Arrow Energy’s largest shareholder, New Hope Coal, has said that it will support the demerger and acquisition scheme.
Pending successful completion of the transaction, a joint venture between Shell and PetroChina joint venture CS CSG Australia will own Arrow’s Queensland CSG assets and domestic power business, as well as Shell’s Queensland CSG assets and its site for a proposed LNG plant on Curtis Island at Gladstone.
Dart Energy would comprise Arrow’s 90 per cent interest in Arrow Energy International, as well as certain Arrow stakes in ASX listed companies including Apollo Gas, Bow Energy and LNG Limited.
Following a trade halt by Arrow on 18 March 2010, Arrow’s Board has unanimously voted in favour of the the transaction, which would provide shareholders with cash of $4.70 per share and one share in Dart Energy.
Dart Energy would be created by a demerger of Arrow’s international business and certain Australian assets. The demerger will be achieved by distributing the shares in Dart Energy to Arrow’s shareholders prior to the acquisition of Arrow by CS CSG.
The new company would also have farmin rights to two of Apollo Gas’ exploration licences in New South Wales, and receive $45 million in cash and a $US25 million loan facility from Shell.
Cooperation with PetroChina would also mean the company would have opportunities for future potential CSG opportunities in China.
Dart Energy will be led by the existing Arrow management team and the previously announced new Chief Executive Officer and Managing Director Simon Potter.