BG Group bid £6 billion for Origin Energy

Source: Energy Digital

Date :30/04/2008 09:59:17

BG Group Plc, a global gas company, has today proposed a takeover bid of A$12.9 billion for Origin Energy Ltd, Australia’s largest energy company.

The offer, which Origin is yet to consider, was at A$14.70 per share. Discussions between the parties will take place and shareholders will be advised of the outcome.

The BG Group has advised that the cash requirement for the bid will be met from existing cash reserves and debt financing provided by a syndicate of banks.

Production

Origin Energy’s oil and gas production assets account for about a quarter of its revenue, making it the second biggest gas and electricity retailer in the Australian coal-seam gas sector.

Earlier this year BG formed a joint venture with Queensland Gas Company to develop an A$8 billion project on the coast of the eastern state. The Group paid A$664 million for a 10 percent stake and assets in the coal seam gas producer.

Last year Origin rejected a A$14 billion merger proposal from Australia’s AGL Energy on the basis that it failed to adequately value the contribution of its business.

April 30, 2008