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Arrow approves takeover by Shell-PetroChina

REUTERS

SYDNEY | Wed Jul 14, 2010 5:59am BST

SYDNEY (Reuters) – Arrow Energy (AOE.AX) shareholders approved a $3.05 billion takeover by Royal Dutch Shell (RDSa.L) and PetroChina’s (0857.HK) on Wednesday, clearing the way for a final legal go-ahead due later this week.

Shareholders voted to demerge Arrow’s international assets into Dart Energy, a newly listed entity, and to sell the bulk of the company, including the coveted coal-seam gas assets to a consortium of Shell and PetroChina in an agreed deal.

The deal cleared a major regulatory hurdle on Wednesday after the National Development and Reform Commission of China recommended the offer and waived a requirement to obtain clearance from the State Administration of Foreign Exchange of China.

The last hurdle for the deal will be approval from the Federal Court of Australia, which is due to rule on the spin-off on July 16.

The Shell-PetroChina joint venture will integrate Arrow’s Australian assets with Shell’s existing CSG assets and Shell’s site for a planned Liquefied Natural Gas (LNG) plant on Curtis Island, Queensland, the companies said previously.

Shell and PetroChina will each own 50 percent of the gas produced by the LNG plant and the Anglo-Dutch oil major said it was likely to sell its gas to China.

^> Shell and PetroChina offered A$4.70 a share for most of Arrow’s domestic coal seam gas assets. Arrow shareholders are also set to receive one share in Dart Energy, for each share in Arrow.

Arrow shares, which have risen more than 20 percent so far this calendar year, last traded at A$4.99.

(Reporting by Michael Smith; Editing by Ed Davies and Balazs Koranyi)

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