BG Group Plc, a UK conglomerate with a portfolio of exploration and production, liquefied natural gas, transmission and distribution and power generation business interests, has trumped Arrow Energy with an all-cash takeover offer for Pure Energy Resources.

BG Group Plc, a UK conglomerate with a portfolio of exploration and production, liquefied natural gas, transmission and distribution and power generation business interests, has trumped Arrow Energy with an all-cash takeover offer for Pure Energy Resources.

The offer of A$6.40 (£2.90) per share values Queensland coal seam explorer Pure at A$800 million, representing a 19 per cent premium on Arrow’s offer of A$5.39 per share made late last year.

The offer aims to strengthen BG’s position in the Australian coal seam gas industry and “gives Pure shareholders the certainty of cash at a time of heightened uncertainty in world equity and financial markets”, the company said.

David Maxwell, senior vice president of QGC, a BG Group business, said: “BG is offering Pure shareholders a significant premium to the Arrow Offer. Our offer conveys full and fair value to Pure shareholders for assets, which complement QGC’s acreage. Importantly, our offer is all cash and is subject to minimal conditions.”

BG Group is being advised by Gresham Advisory Partners. Legal advisers are Corrs Chambers Westgarth.