BG Group not to extend takeover bid for Origin Energy
BG Group plc (“BG Group” - LSE: BG.L) has announced that it does not intend to extend the period of its offer to acquire all of the issued shares in Origin Energy Limited (“Origin” ASX:ORG). BG Group will not increase the offer price or waive any of the offer conditions prior to the expiry of the offer period, and BG Group therefore expects that its offer will lapse with conditions unsatisfied on 26 September 2008. This follows the announcement by Origin and ConocoPhillips (NYSE:COP) on 8 September 2008 of a coal seam gas (CSG) to liquefied natural gas (LNG) joint venture.
BG Group Chief Executive Frank Chapman said: “The price implied by this newly-announced joint venture is higher than BG Group is able to justify. We have therefore decided not to extend or amend our offer, which we expect will now lapse. We remain firmly committed to Australia and our existing LNG joint venture with QGC, which is progressing well.”
“We wish Origin and ConocoPhillips every success with their joint venture.”
The BG Group Shareholder General Meeting, scheduled for 16 September 2008, will no longer take place.
Origin shareholders who accepted BG Group’s takeover offer will retain their Origin shares if the offer lapses as expected on 26 September.
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