Mergers Acquisitions Deal Analysis Royal Dutch Shell and PetroChina Company to Acquire Arrow Energy Reference Code GDGE0117M A by GlobalData

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Mergers & Acquisitions Deal Analysis - Royal Dutch Shell and PetroChina Company to Acquire Arrow Energy

Summary

Royal Dutch Shell Plc and PetroChina Company Limited agreed to raise their offer from AUD3,260 million ($2,936.06 million) to AUD3,500 million ($3,210 million) for the acquisition of Arrow Energy Limited through their subsidiary, CS CSG (Australia), a joint venture formed by Shell and PetroChina. The offer price (AUD4.70 per share) represents a 35% premium to both the last closing price and the one-month volume weighted average price prior to March 8, 2009. As per the revised agreement, Arrow Energy’s shareholders will receive cash of AUD4.70 per share ($4.29 per share), plus one share in Arrow Energy’s newly listed international entity, Dart Energy Ltd. Dart Energy Ltd. will list its shares on the Australian Securities Exchange, holding AUD45 million ($41.17 million) in cash, earlier held by the divested entity, while building its interest in Apollo Gas, Bow Energy and Liquefied Natural Gas and its international interests. Arrow Energy has appointed Citibank, N.A. and UBS Securities LLC as financial advisers and Mallesons Stephen Jaques as legal advisers in relation to the proposal. The transaction implies deal values of $361,283.06 per boe of daily production, $46.93 per boe of proved reserves, and $5.49 per boe of 2P reserves

Scope

- Rationale behind Royal Dutch Shell Plc and PetroChina Company Limited's acquisition of Arrow Energy Limited
- Strategic Benefits for PetroChina Company Limited to jointly acquire Arrow Energy Limited
- Geography covered - Australia
- Deal Financials and Valuations
- Information on Royal Dutch Shell Plc, PetroChina Company Limited and Arrow Energy Limited

Reasons to buy

- Develop a sound undestanding of the major M&A's, Partnerships, And Joint Ventures taking place in Asia-Pacific Oil & Gas industry
- Identify the most lucrative segments to leverage on the growth oppurtunities available in Australia

More Info
									             Mergers & Acquisitions Deal Analysis - Royal Dutch Shell
               and PetroChina Company to Acquire Arrow Energy
       Reference Code: GDGE0117M&A                                                                                                             Publication Date: MAR 2010

                                                                                                    Table 14: Acquirer Information .................................................. 6
       1         Table of Contents
       1   Table of Contents ...............................................................1       1.2       List of Figures
         1.1    List of Tables ...............................................................1
                                                                                                    Figure 1: Queensland, Major CSG Basins, 2010 ...................... 3
         1.2    List of Figures..............................................................1
                                                                                                    Figure 2: Arrow Energy, Operation Map,2010........................... 3
       2 Royal Dutch Shell and PetroChina Company to Acquire
                                                                                                    Figure 3: GlobalData Methodology............................................ 7
       Arrow Energy.............................................................................1
         2.1    Deal Overview .............................................................1
         2.2    Deal in Brief.................................................................1
         2.3    The Acquisition of Arrow Energy’s Coal Seam
         Business Will Provide Shell and PetroChina a Significant                                   2         Royal Dutch Shell and PetroChina
         Exposure to Australia’s CSG Industry ....................................2                           Company to Acquire Arrow Energy
         2.4    CSG Overview.............................................................2
         2.5    Arrow Energy Plans to Raise Funds by Selling its                                    2.1       Deal Overview
         Stake in its CSG Business to Finance its Acquisition of
         Fisherman’s Landing Project..................................................3                 Table 1: Deal Overview
         2.6    Shell and PetroChina are Acquiring Arrow Energy at a
         High Premium as Compared to Other Recent Transactions ..4                                      Deal Type                                           Asset Transactions
         2.7    Companies Involved....................................................4                 Deal Sub Type                                       Majority Acquisition
         2.8    Deal Financials............................................................4
                                                                                                        Deal Status                                                  Announced
         2.9    Deal Rationale.............................................................4
         2.10       Detailed Target Information ....................................5                   Announced Date                                             Mar 08, 2010
         2.11       Key Financials ........................................................5            Source: GlobalData
         2.12       Share Price Information ..........................................5
         2.13       Company Valuation Multiples .................................5
         2.14       Production and Reserves Information ....................5                       2.2       Deal in Brief
         2.15       Transaction Implied Values ....................................6                Royal Dutch Shell Plc and PetroChina Company Limited agreed
         2.16       Commodity Prices Information................................6
                                                                                                    to raise their offer from AUD3,260 million ($2,936.06 million) to
         2.17       Detailed Acquirer Information .................................6
         2.18       Detailed Acquirer Information .................................6                AUD3,500 million ($3,210 million) for the acquisition of Arrow
       3 Appendix ............................................................................7     Energy Limited through their subsidiary, CS CSG (Australia), a
         3.1    About Energy eTrack...................................................7             joint venture formed by Shell and PetroChina. The offer price
         3.2    Methodology................................................................7        (AUD4.70 per share) represents a 35% premium to both the
         3.3    Contact Us ..................................................................8      last closing price and the one-month volume weighted average
         3.4    Disclaimer ...................................................................8     price prior to March 8, 2009.
                                                                                                    As per the revised agreement, Arrow Energy’s shareholders will
                                                                                                    receive cash of AUD4.70 per share ($4.29 per share), plus one
       1.1       List of Tables
                                                                                                    share in Arrow Energy’s newly listed international entity, Dart
       Table 1: Deal Overview .............................................................1        Energy Ltd.
       Table 2: Royal Dutch Shell and PetroChina, Performa
                Acquisition Details, 2010 .............................................2            Dart Energy Ltd. will list its shares on the Australian Securities
       Table 3: Australia, E&P Assets Transactions and Acquisitions                                 Exchange, holding AUD45 million ($41.17 million) in cash,
                Details, May 2007-December 2009 .............................4                      earlier held by the divested entity, while building its interest in
       Table 4: Key Companies Involved in the Deal, 2010 .................4                         Apo
								
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