Origin sells Lattice Energy to Beach Energy for $1.6b

Origin sells Lattice Energy to Beach Energy for $1.6b”

Origin said it would sell the Lattice Energy unit to Beach Energy Ltd. (BPT.AU) after ditching earlier plans for an initial public offering, which would have been one of the biggest new listings on the Australian Securities Exchange this year.

"While Lattice Energy was ready to be a successful independent listed entity, the sale to Beach represented the most attractive option to deliver value to Origin shareholders", Origin CEO, Frank Calabria said.

On Wednesday, Australia's government held back from imposing curbs on exports of liquefied natural gas after producers, including Origin, agreed to put more gas into the domestic market to ease energy shortages.

Moreover it also simplifies its business and will also improve shareholder returns.

The Cooper Basin-focused Beach in 2016 completed an all-stock takeover of smaller rival Drillsearch Energy, amid an extended downturn in oil prices.

The acquisition delivers per share reserves, operating cash flow and value accretion.

Origin and Beach have a long history of collaboration through joint ventures and existing gas supply arrangements.

Beach said its largest shareholder, Seven Group Holdings, is "strongly supportive" of the acquisition. Its attributable east coast sales gas and ethane production will increase by about 310 per cent to 95 PJ equivalent from its three core gas processing hubs, and will represent around 15 per cent of the east coast demand, as recorded past year.

Beach's raising involves a 3-for-14 non-renounceable entitlement offer, of which about $233 million is fully underwritten.

Origin said proceeds from the sale of gas its assets, dubbed Lattice Energy, would be used to reduce its adjusted net debt to below A$7 billion ($5.5 billion) by June 30, 2018.

Beach will be advised on the transaction by Credit Suisse and Luminis Partners, with Gilbert + Tobin and Chapman Tripp providing legal advice.

The deal is still subject to approval from the New Zealand Overseas Investment Office and the New Zealand Minister of Energy and Resources.

Like this



28 September 2017
Disgraced wellness blogger Belle Gibson fined $410000 after lying to consumers
She launched a successful app and cookbook, but later admitted the diagnosis was made up . Two A$90,000 penalties for Ms Gibson's app sales and company earnings donation claims.

28 September 2017
Louisiana woman killed by ex-husband in brutal ax attack, police say
Doran says the suspect, 56-year-old Mark Owens, waited to ambush his ex-wife, 48-year-old Kimberly Owens. He and his ex-wife have one son together and have reportedly been involved in an ongoing dispute.

28 September 2017
Alabama's Director of Basketball Operations Resigns
SEC commissioner Greg Sankey has now summoned all SEC men's basketball coaches for a meeting in Birmingham Thursday. The university said they have no knowledge of any NCAA violations or any SEC rule violations, Byrne went on to say.

28 September 2017
Deshaun Watson gives stadium employees his first game check in touching video
As a first-round rookie earning a salary of $465,000, Watson gave up just over $29,000 to the women. Watson and the Texans host the Tennessee Titans on Sunday at NRG Stadium.

28 September 2017
Dem senator to appear with Trump at tax reform rally
It's part of a White House strategy to target vulnerable Democrats who could help Republicans push through their tax reform plan. In an effort to pass reform in bipartisan fashion, Democrat Senators Joe Donnelly and Heidi Heitkamp are invited to attend.

28 September 2017
People injured in rockfall at El Capitan in Yosemite
The post on SuperTopo described the rockfall as a sheet of rock about 100 square feet from the "Waterfall Route". It happened just after 2 p.m. on the East Buttress of El Capitan, Yosemite spokesman Scott Gediman said.

28 September 2017
Danny Amendola reiterates Patriots will likely stand for national anthem
The Patriots are better off preparing for Newton as if he's playing like the All-Pro and former NFC champion that he is. Through three games he's totaled 2 touchdown passes and 4 interceptions resulting in a 69.7 passer rating.

28 September 2017
Arsene Wenger says Kieran Gibbs' exit hurt more than Alex Oxlade-Chamberlain's
The left-back was not going to get the game time he was after yet Wenger was keen to keep him. Arsenal: Mesut Ozil can make a return following successful training over the weekend.

28 September 2017
Andy Rubin's Essential Has Only Shipped 5000 Phones
Plus, while the Essential Phone does have an enticing, minimal bezel design, it isn't the only device with this feature. Essential did not immediately respond to a request for comment on the report.

28 September 2017
New Castle native's social media posts prompt Army investigation
Military Academy graduation in May with a handwritten message under his uniform cap stating, "Communism will win". The aims of the DSA are decidedly anti-American and anti-U.S. military.