Published: Thursday July 3, 2008
The BG Group this week launched a hostile takeover bid of Australian$13.8 billion (US$13.1 billion) for Australia’s Origin Energy.
BG Group is offering Australian$15.50 (US$14.75) a share cash to Origin’s shareholders. That is the same offer that was rejected by Origin’s board of directors last month.
Origin Energy Ltd is an integrated Australian energy company which was formed in February 2000. Its focus is in gas and oil exploration, production, energy retailing and power generation.
BG said the offer price represents a 48 per cent cash premium on Origin’s closing price of Australian$10.47 (US$9.97) on April 29 just before it made the first approach to acquire the Australian energy group.
BG Group said the offer represented a ‘material premium’ for Origin shareholders and reflected the value of Origin’s energy business.
BG has been operating in T&T as a major gas player since 1989 through a subsidiary, BGTT.
BGTT supplies gas to the domestic market and to Atlantic LNG primarily for export.
BG’s chief executive Frank Chapman said, “Recent transactions, analysed on a comparable basis, confirm that BG Group’s offer provides full value to Origin’s shareholders.
Origin advised its shareholders to take no action in response to BG’s takeover bid at present.
Source: Trinidad Guardian Newspapers
http://www.guardian.co.tt/business4.html
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