Shell will acquire 30 percent of Arrow’s interest in all of its Australian upstream tenements for up to US$612.5 million (A$761 million), including:
An initial upfront payment of US$413 million (including back costs from 1/1/2008)
Shell will acquire 10% of Arrow International Pte Ltd, which holds all of Arrow’s International assets, for up to US$125 million (A$155 million), including:
US$50 million up front payment (together with a further payment with respect to reimbursement of certain back costs)
So they are going to come into a lot of cash. In total the deal is worth over 1 billion AUD to arrow.
AOE Price at posting:
$2.12 Sentiment: LT Buy Disclosure: Held