BG Group today made an unsolicited $A12.9bn (£6.1bn) takeover bid for Origin Energy, Australia’s second-biggest energy retailer, as it seeks to tap into the fast growing Asian demand for gas.
Origin, the top player in Australia’s fast-growing coal-seam gas sector, said the British gas major had made an approach to acquire its shares for $A14.70 in cash – a 40% premium to the closing price on Tuesday, according to The Times.
Frank Chapman, BG chief executive, signaled his company’s intentions last month on a visit to Australia, saying the company had for some time been looking for ‘a source of equity supply in the Asia-Pacific basin’.
Origin has already been a takeover target. Last year it knocked back a proposed $A14bn merger with AGL Energy, Australia’s biggest power retailer, saying the offer had ‘little upside’.
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