BG ponders fresh bid for Origin after £6.7bn offer is rejected
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.BG Group said yesterday that it had not ruled out raising its A$13.8bn (£6.7bn) offer for Origin Energy as the Australian natural resources group formally rejected its hostile bid.
Grant King, Origin's chief executive, said that BG's offer for the company undervalued its huge coal seam gas reserves. "We are living in a time when energy prices globally are increasing, which adds to the value of the business," he said.
BG first approached Origin in May, and is keen to become the first company in the world to convert coal seam gas into liquefied natural gas. Origin's board initially accepted the $15.50-per-share offer, but changed its mind following a similar deal between Santos and Petronas, which was completed at higher valuations.
Frank Chapman, BG's chief executive, is not ruling out increasing his bid for Origin, though he attacked the company's A$16bn valuation of itself. Mr Chapman pointed out that Origin has no experience in the liquefied gas market, and that no company has yet brought coal seam gas to market.
"It remains the case that Origin must spend a significant amount of time and money to prove up its coal seam gas potential," he added.
Origin has also said that its rejection of BG's offer reflects concerns about the regulatory hurdles the deal would have to clear, and that it is now keen to pursue partnership deals to exploit its offer.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments