Technology Slice

Royal Dutch Shell Deal

Royal Dutch Shell Deal – Arrow Energy backed a revised $3.44 billion bid today from Royal Dutch Shell and PetroChina for the majority of its Australian assets.

The coal-seam gas producer announced that under the new deal, Arrow shareholders will receive cash of $4.70 per share, plus one share in a new listed entity, Dart Energy.

The deal will give Shell reserves to feed the Curtis Island LNG project. Shell’s plant is one of more than a dozen planned LNG ventures in Australia.

Analysts had speculated that Shell and PetroChina would have to increase their original bid of $4.45 a share, with some suggesting a revised bid could be up to $5. Arrow shares have been in a trading halt, pending the announcement, and last traded on Thursday at $5.29.

Arrow said the cash component of the deal represented a 35 per cent premium to both the last closing price and one-month volume weighted average price prior to 8 March, when the original bid was made.

“This transaction crystallises the value of more mature assets that have been built in Arrow’s Queensland business through the rigorous execution of our business strategy,” Arrow chairman John Reynolds said.

Tags: Arrow, Assets, Business Strategy, Cash Component, Chairman John, Coal Seam Gas, Curtis Island, Dart, Gas Producer, John Reynolds, Lng Project, New Deal, Petrochina, Queensland Business, Royal Dutch Shell, Shareholders, Shell Energy, Shell Reserves, Trading Halt, Volume Weighted Average Price
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