BG confirms it would sell Contact

Reuters | Friday, 25 July 2008

Britain's BG Group will sell Contact Energy, which is 51.4 percent owned by Origin Energy, should it succeed in its attempt to take over the Australian energy company, said Ashley Almanza, BG's chief finance officer.

"Our intention is to dispose of Contact Energy," Almanza told reporters in a conference call following BG's second quarter results.

Origin rejected BG's 6.7 billion pounds bid, prompting the UK natural gas producer to go hostile by turning to Origin shareholders for support.

Almanza said the all-cash offer has been "well received" by Origin shareholders.

"Shareholders are pleased we've come back," he said, adding that the two-month offer period should begin within weeks.

In May, when the bid was announced, BG said its offer did not attribute any premium to Contact shares.

The rest of Origin's business will be kept intact, said Frank Chapman, BG's chief executive.

"We're buying an integrated business," he told reporters.