OIL and gas operator BG Group threw down the gauntlet to bid rivals yesterday with a £360million offer for Australian coal-seam gas producer Pure Energy.
BG’s bid for the Queensland firm comes after a £2.2billion deal to buy Queensland Gas Company (QGC) last year.
Australia’s Arrow Energy has also made an approach, but BG said it had already bought 10% of Pure’s shares and would not support the rival offer, which is subject to a 90% acceptance condition.
It said: “BG Group’s offer gives Pure shareholders the certainty of cash at a time of heightened uncertainty in world equity and financial markets.”
BG has been eyeing several companies in Australia as it looks to expand its presence in the region and bolster its assets in coal-seam gas: methane gas trapped underground in deep coal seams by water.
It said its bid was worth 19% more than the Arrow offer, adding that it was subject to a 50.1% acceptance condition
BG, which saw its shares decline by 9p yesterday to £10.67, said that its offer for Pure was all-cash, subject to minimal conditions, and was for assets which complemented QGC’s acreage.