BG Group’s shareholders have voted in support of the proposed multi-billion merger with Shell, bringing to a conclusion the oil and gas deal of the decade, as it has been described.
The BG Group shareholders’ meeting was held on Thursday, January 28, 2015, and according to reports, more that 500 people attended.
At the meeting, the BG shareholders voted to approve the cash and share offer made by Shell to acquire the entire issued and to be issued share capital of the BG Group to be effected by way of a Court-sanctioned scheme of arrangement.
Votes were cast in favor of the Scheme at the Court Meeting. Also, at the BG General Meeting, the shareholders voted to pass the Special Resolution to implement the Scheme.
According to BG, 87.32% of the votes were in favor of the Scheme at the Court Meeting, with 12.68% against. However, at the BG General Meeting, 99.5% voted for the deal, with 0.45% against.
Shell’s CEO Ben van Beurden said:“I am very pleased that BG shareholders have voted in favour of the combination and look forward to welcoming them onto our register when the transaction closes. BG adds attractive deep water and integrated gas positions and will act as a catalyst for accelerating the re-shaping of our business. We now look forward delivering the benefits of the combination as quickly as possible following completion.”
To remind, the merger estimated at around $50 billion, was also approved by Shell’s shareholders at a meeting held on Wednesday, where 83.08% of the company’s shareholders expressed their support for the recommended combination with BG Group by carrying the resolution to approve and implement the transaction, and 16.92% voted against.
The transaction is expected to complete on February 15, 2016, subject to the satisfaction or waiver of certain customary conditions, including the sanction of the scheme of arrangement to implement the combination by the High Court of Justice, Shell said on Wednesday.
By buying the UK energy firm BG Group, Shell will get hold of oil fields in deep water Brazil. By 2025 Brazil will be delivering 550 kb/d of oil – 13% of BG/Shell’s total production, the biggest single country position in the combined portfolio.
Furthermore, the merger will create an LNG behemoth as the deal combines the two largest IOC LNG players to create an industry giant. By 2018, the combined entity will control sales of 44 mmtpa of LNG, making it the largest LNG seller in the world.
Offshore Energy Today Staff