Arrow Says "Yes" To Higher Price
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As expected, Shell and PetroChina sweetened their combined bid for Arrow Energy with a bit more cash and certainty for the international assets to be valued, and the Australian company said yes.Arrow Energy said it was & #160;telling shareholders & #160;to accept the new, higher offer from Royal Dutch Shell and PetroChina.Shell and PetroChina lifted their offer to & #36;4.70 a share in cash for Arrow's Australian assets plus one share in a new listed entity to be called Dart Energy, which will house the group's Asian exploration assets and some Australian assets.The new offer is pitched at a 35% premium to Arrow's last trade ahead of March 8 when the first bid was revealed. It & #160;values the Australian assets at & #36;3.44 billion.The deal sweetens the initial offer to Arrow shareholders of & #36;4.45 per share, or & #36;3.3 billion, plus a share in the planned spin-off, & #160;Arrow International spin-off.Dart Energy will comprise of 90% of Arrow's interest in Arrow Energy International, which holds the existing portfolio of international assets in China, India, Vietnam and Indonesia, Arrow said. It will also include some Arrow Energy stakes in companies listed on the Australian Securities Exchange.These included & #160;21.04% shareholding in Apollo Gas Ltd, 1.4% shareholding in Bow Energy Ltd, and 7.5% shareholding in Liquefied Natural Gas Ltd.Farm-in rights into Apollo Gas's licences in NSW will also be part of Dart Energy, as will & #36;45 million cash, a & #36;US25 million ( & #36;27.3 million) loan facility from Shell and ''co-operation with PetroChina in relation to future coal seam gas opportunities in China''. & quot;Shell will retain its 10 percent interest in Arrow Energy's existing portfolio of international assets (through its shareholding in Arrow Energy International Pte Ltd), & quot; Arrow said in the statement. & quot;Dart Energy will be led by the existing Arrow Energy management team (Nick Davies, Shaun Scott, Stephen Bizzell, Graham Yerbury) and the previously announced new CEO/MD Simon Potter. & quot;The Demerger allows Arrow Energy Shareholders to continue to participate, through Dart Energy, in Arrow Energy's dynamic international growth strategy and NSW coal seam gas opportunities. & quot;''The Arrow board unanimously recommends that Arrow Energy shareholders vote in favour of both schemes,'' Arrow said in its ASX statement.The company said its directors would vote their shares in favour of the schemes, in the absence of a better proposal and subject to an independent expert's report. & quot;The Demerger and the Acquisition will occur under two separate Court approved Schemes of Arrangements, & quot; Arrow directors said. & quot;Under the Schemes, Arrow Energy shareholders will receive one share in the demerged Dart Energy for & #160;each Arrow Energy share and separately a cash payment from CSCo for the Acquisition of the Queensland CSG business if both Schemes are approved. & quot;The proposed demerger will be achieved by distributing the shares in Dart Energy to Arrow Energy's shareholders prior to Acquisition of Arrow Energy by CSCo. Arrow Energy, CSCo and Dart Energy have agreed to a 9 month transitional services agreement to facilitate an orderly demerger process. & quot;Arrow shares fell 19c, or 3.6%, to & #36;5.10. The market thinks this is a done deal. & #160;
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Daniel Kertcher established Platinum Pursuits in 2001 as a vehicle in which to share his knowledge of strategies to use the financial markets to grow wealth, with the aim of achieving financial freedom by making your money work for you.
His argument is that until you become financially literate and develop a method where you're able to get a reasonable return on your capital (i.e. making your money work for you), you will instead be forever working hard for your money.
Daniel Kertcher personally achieved financial freedom at a relatively young age, through his knowledge of property and then financial markets investing. Through using Options and leveraged instruments such as CFDs, Daniel developed a system to trade the markets where he could benefit from the leverage when the trade went in the direction he predicted, and hedged his positions so that there was a limited downside risk.
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To be truly financially literate, it can pay to explore all the options available when you are in a position to try to get ahead in life. Daniel currently presents free introductory seminars nationally on selected dates from February to November. |
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