BG takeover bid for Origin Energy

BG Group plc announced its intention to acquire all of the issued shares in Origin Energy Limited at A$15.50 cash per share by way of a formal off-market takeover bid.

The all-cash bid capitalises Origin’s ordinary equity at approximately A$13.8 billion (£6.7 billion) fully diluted.

The offer price represents a 48% premium to Origin’s closing price of A$10.47 on 29 April 2008 - the last full day of trading before the announcement of BG Group’s initial approach on 30 April 2008 - and a 72% premium to Origin’s 90-day Volume-Weighted Average Price (VWAP) on 29 April 2008.

BG Group’s offer price will be adjusted for any 2007/8 final dividend and any other distribution or return to Origin shareholders.

BG Group believes that its offer represents a material premium for Origin shareholders which reflects the value of Origin’s integrated energy business and its longer-term prospective coal seam gas (CSG) development.

BG Group believes that a detailed and careful analysis of the technical, financial and commercial risks associated with the commercialisation of Origin’s CSG resources will confirm the attractiveness of its immediate all-cash offer.