Recommended Cash and Share Offer for BG Group plc by Royal Dutch Shell plc

abarrelfull wrote on 08 Apr 2015 09:06
Tags: bg-group deal shell top

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The Boards of Shell and BG are pleased to announce that they have reached agreement on the
terms of a recommended cash and share offer to be made by Shell for the entire issued and to
be issued share capital of BG.

• The Combination will result in BG Shareholders owning approximately 19% of the Combined Group.
• Shell expects the Combination to accelerate its growth strategy in global LNG and deepwater.
• The Combination will add some 25% to Shell’s proved oil and gas reserves and 20% to production, each on a 2014 basis, and provide Shell with enhanced positions in competitive new oil and gas projects, particularly in Australia LNG and Brazil deep water.
• The Combination has the potential to unlock further value for both sets of shareholders from the combined portfolio. An enhanced set of upstream positions will be a springboard to highgrade the Combined Group’s longer term portfolio, increase asset sales and reduce capital investment, thereby enhancing the Combined Group’s capacity to pay dividends and undertake share buybacks.
• Shell expects the Combination to generate pre-tax synergies of approximately $2.5 billion per annum (which have been reported on) and has also identified further significant opportunities.
• In the near term, BG Shareholders will benefit from the dividends enjoyed by Shell Shareholders
• Shell today confirms its intention to pay dividends of $1.88 per ordinary share in 2015 and at least that amount in 2016.

• Recommended Cash and Share Offer for BG Group plc by Royal Dutch Shell plc

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