Arrow takeover bid gets approval from FIRB

Arrow takeover bid gets approval from FIRBThe Foreign Investment Review Board of Australia has approved the $A3.44 billion joint takeover bid by Royal Dutch Shell and PetroChina for Arrow Energy. Arrow Energy Ltd., the coal seam gas producer in Australia, provided this information today in a statement.

Arrow said that after getting the approval from FIRB the joint venture company could now seek regulatory approval from Chinese authorities. Arrow also said that it is planning a demerger of the international business and selected domestic assets.

According to a statement by Arrow, the approval of the transaction by FIRB satisfies one of the conditions of the previously announced bid by CS CSG (Australia). CS CSG (Australia) is a joint venture company by a subsidiary of Shell and a subsidiary of PetroChina in Australia.

Arrow, owner of the largest coal seam gas reserves in Queensland State, is also planning a demerger of the international business and selected domestic assets. Under the deal, Arrow will spin off its assets outside Australia into a new company, Dart Energy Ltd. Arrow shareholders will get $A4.70 cash per share and a share in the demerged entity Dart Energy Limited for each Arrow share they hold.

Arrow said that it will hold a shareholder meeting to consider the proposed demerger and acquisition schemes in mid July.