The offer price represents a 48% premium to Origin’s closing price of $10.47 on April 29, 2008, the last full day of trading before the announcement of BG Group’s initial approach on April 30, 2008, and a 72% premium to Origin’s 90-day volume-weighted average price on April 29, 2008.
The offer price is expected to be adjusted for any 2007-08 final dividend and any other distribution or return to Origin shareholders. BG believes that its offer represents a material premium for Origin shareholders, which reflects the value of Origin’s integrated energy business and its long-term prospective coal seam gas (CSG) development.
The British company said that a detailed and careful analysis of the technical, financial and commercial risks associated with the commercialization of Origin’s CSG resources will confirm the attractiveness of its immediate all-cash offer. In light of its offer, the BG Group noted that Origin shareholders should be given the opportunity to consider its offer.
Frank Chapman, BG Group’s CEO, said: Origin has good retail, power generation and exploration and production businesses. Recent transactions, analyzed on a comparable basis, confirm that BG Group’s offer provides full value to Origin’s shareholders. We believe Origin shareholders have limited visibility of the risks inherent in Origin’s current reserves position and liquefied natural gas joint venture alternatives.
