US investment firm The TWC Group has lauched an $812 million...

US investment firm The TWC Group has lauched an $812 million takeover bid for Queensland Gas Co (QGC).

TWC is offering QGC shareholders $1.51 per share in cash or preference shares or a combination of each.

The company said its offer was within a value range provided by an independent expert and represents an 11 per cent premium to QGC's closing share price yesterday.

TWC, which has about $150 billion in assets under management, said its offer was superior to a proposal for QGC by AGL Energy.

"Our offer provides QGC shareholders with superior value and allows QGC shareholders the opportunity to participate for all of their shares, unlike the AGL proposal, which only included a limited 12.5 per cent buyback option,'' TWC managing director Blair Thomas said.

QGC has yet to respond to the offer.

QGC had previously backed a proposed $292 deal with AGL, that would involve AGL taking a 27.5 per cent in QGC.

Last week, oil and gas producer Santos dropped its bid for QGC, which would have resulted in the creation of a "new'' QGC, after opposition from the competition watchdog.

TWC said it has an investment plan for QGC's Undulla Nose coal seam assets and intended to ensure that QGC's gas resources were commercialised soon.

"In addition to the development of QGC's reserves, we will seek to address existing infrastructure bottlenecks that inhibit efficient development of Eastern Australian gas markets,'' Mr Thomas said.

TWC said under its offer, QGC shareholders can receive their consideration in the form of 10 per cent preference shares that can be put into the company for one year.

If they elected to receive cash, they can also receive a maximum of 25 per cent of their consideration as preference shares instead.

TWC's offer is subject to conditions including a minimum of 50.1 per cent acceptances.

QGC shares resume trading at 1.20pm AEDT after last trading earlier today at $1.325, down 3.5 cents.

Share this article (What is this?)