Shell-BG: more details of the deal

Shell-BG: more details of the deal

Apr 8th, 2015 

by John Donovan. 

No comments yet

FT: Shell-BG: more details of the deal

8 April 2015

Following the momentous news that Royal Dutch Shell is buying BG Group for £47bn, here are some more details for investors to chew over, including a promise of a big premium, enhanced dividends and a share buyback.

Financial details of the offer:

• The deal, which gives BG investors 383p in cash and 0.4454 Shell B shares is based on a 90 day trading day volume weighted average price of 2,170.3p per Shell B Share on 7 April 2015.
• This, Shell says, gives a value of approximately 1,350p per BG Share.
• The 1,350p is a premium of approximately 52 per cent to the 90 trading day volume weighted average price of 890.4 pence per BG Share on 7 April 2015.

Why is it happening?

Shell believes there are major benefits to be had in taking on BG’s reserves and projects (in a market where low oil prices have made it unprofitable to develop new projects from scratch). From Shell’s statement:

read more

Share this:

• Facebook
• Twitter
• Email
• Print

Like this:

Loading...

Posted in: BG Group, Gas, LNG, Oil Prices, Royal Dutch Shell Plc.
Tagged: Gas · Oil · Royal Dutch Shell Plc · Shell

The TRUTH will set you FREE.