CSG, Markets, Technology

Arrow takeover one step closer after clearing regulatory hurdle

CS CSG has agreed to pay $4.70 cash per share for all of the shares in Arrow, representing a total consideration of $3.5 billion.

The offer is still subject to Arrow’s shareholder approval, Australian court approval and Chinese Government approval. Arrow has recommended its shareholders vote in favour of the takeover and Arrow’s largest shareholder, New Hope Corporation, has also indicated its support for the offer.

As part of the agreement Arrow would demerge its assets, involving a new listed company, Dart Energy Limited. 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.

If the acquisition proceeds, CS CSG would 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.

The joint venture said “The approval of the Foreign Investment Review Board is another step towards Shell and PetroChina being able to invest the funds required to further develop Queensland’s CSG to LNG industry and construct a world-scale LNG plant on Curtis Island.”?

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