Shell Expands Power Business With AUD617 Million Australian Deal.
(Alliance News) - Oil major Royal Dutch Shell PLC has agreed to buy Australia's ERM Power Ltd for AUD617 million, Shell said on Thursday.
Shell is offering AUD2.265 per ERM share, which is a 38% premium to ERM's one-month volume-weighted average price to Wednesday in Sydney. The AUD617 million price is equivalent to around GBP343 million.
ERM Chief Executive Julieanne Alroe said: "The board believes the proposed all-cash proposal represents compelling value and provides an attractive opportunity for shareholders to realise certain value at a significant premium to market.
"The board has carefully considered the advantages and disadvantages of the proposed scheme and believes the offer price of AUD2.46510 cash per share recognises the strategic value of our business and our success in becoming a leading Australian energy company," she continued.
"The directors of ERM Power unanimously recommend ERM Power shareholders vote in favour of the scheme in the absence of a superior proposal and subject to the independent expert concluding in its independent expert's report (and continuing to conclude) the scheme is in the best interests of ERM Power shareholders."
Zoe Yujnovich, the chair of Shell Australia, said the deal is part of a move to expand Shell's integrated power business.
Shell 'A' shares in London were 0.6% lower on Thursday at a price of 2,310.50 pence, with 'B' shares down 0.6% at 2,296.07p.
By George Collard; firstname.lastname@example.org
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|Date:||Aug 22, 2019|
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