UK gas giant BG Group is to acquire Australian coal bed methane leader Queensland Gas Company (QGC) in a friendly on-market takeover valued at about A$5.6 billion.
BG has agreed to buy all outstanding shares of QGC for $5.75 each for A$5.2 billion, an 80% premium to QGC’s share prior to the suspension of trading on Friday. The company already owns 9.9% of QGC under the terms of an alliance struck earlier this year to develop a CBM-fed liquefied natural gas project in Queensland. As part of today’s deal, AGL, QGC’s biggest single shareholder, said it would sell its 22% stake to BG for A$1.18 billion. BG said it would also buy the stakes of major shareholders ANZ Infrastructure Services and Sentient Group, as well as shares held by QGC’s senior management, together comprising an additional 17.1% of the company. BG said its offer was final and would not be increased in the face of any competing bid. QGC’s management recommended the offer to shareholders. Managing director Richard Cottee said that BG and QGC remained committed to developing the planned Curtis LNG project in Queensland. As part of plans to develop the Curtis project, BG earlier this year took a 20% stake in QGC’s CBM assets in the Surat basin in Queensland.
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