Shell ready to accept BG offer

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Global gas and oil giant Royal Dutch Shell (RDSB) looks set to accept an offer from Britain's BG Group (BG-) for its stake in Australian coal seam gas explorer Pure Energy.

BG Group is offering AU$1.02 billion for the company, which breaks down to AU$8.25 per share, as it looks to improve the reach of its activities in Queensland's coal seam gas market.

In a brief statement, Shell said: "Shell intends to accept BG's offer for Pure Energy Resources in the absence of a further superior offer."

The all-cash offer from BG Group is subject to 90% shareholder acceptance at Pure Energy, which has also received a bid from rival Arrow which entailed AU$3 in cash and 1.57 Arrow shares, implying a bid of AU$7.14 per share.

Arrow launched its bid in December and saw it recommended by the Pure Energy board before BG Group entered the fray in early February. A renewed bid from Arrow is believed to be dependent on the company receiving Shell's financial backing, and it remains unsure if it will battle to increase its near 20% stake in Pure Energy.

The BG Group offer has been described as "highly attractive" by Pure Energy chairman Robert Day.

Shell ready to accept BG offer

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