Bow Energy to fuel Arrow growth
Arrow Energy, the wholly owned subsidiary of Royal Dutch Shell and PetroChina, has launched a friendly takeover bid for Bow Energy after months of negotiating a bidding price.
The move has received unanimous support from Bow's board, who have urged the company's shareholders to accept the revised price of $1.52 per share.
"The Board of Bow unanimously recommends that Bow shareholders vote in favour of the Scheme in absence of a superior proposal, and subject to the Independent Expert stating that in its opinion, the Scheme is in the best interests of Bow Energy shareholders," Bow's Board announced in a statement.
The revised offer saw Arrow Energy upgrade its initial offer from $1.48 to $1.52 after the first bid was launched on 22 August.
"The Board has completed a thorough review of Bow's options to maximise shareholder value that included Bow remaining an independent ASX listed company and further developing its assets, introducing joint venture partners and change of control transactions," Bow Energy Chairman Howard Stack said.
Bow shareholders will vote on the deal in an extraordinary general meeting scheduled for December.
Arrow Energy has announced plans to expand its LNG output by up to 15 per cent after the acquisition, which will see the company expand output from 4 million tonnes to 4.6 million tonnes a year.