The Boards of PICL and Star Energy announce that they have reached agreement on the terms of a Recommended Increased Offer for the entire issued and to be issued share capital of Star Energy not already held by PICL.

The Star Energy Directors, who have been so advised by Hoare Govett and Citi, consider the terms of the Recommended Increased Offer to be fair and reasonable. In providing its advice to the directors of Star Energy, Hoare Govett and Citi have taken into account the commercial assessment of the Star Energy Directors. Accordingly, the Star Energy Directors unanimously recommend that Star Energy Shareholders accept the Recommended Increased Offer.

As at the date of this announcement, PICL legally and beneficially owned 36,290,750 Star Energy Shares representing 39.02 per cent. of the issued share capital of Star Energy. PICL has received irrevocable undertakings to accept the Recommended Increased Offer from certain Star Energy Shareholders (including the Star Energy Directors) representing approximately 35.7 per cent. of Star Energy’s existing issued share capital.

Commenting on the Recommended Increased Offer, Stephen Gutteridge, Chairman of Star Energy said, “Star Energy has always been grateful for the strong support from shareholders for its strategy of developing a multi-site, gas storage business. That support has enabled the Company to construct Humbly Grove, acquire additional assets, maintain good financial health and assemble a unique portfolio of potential storage opportunities. There are, however, risks in the development of that portfolio and, on balance, we believe that this transaction provides shareholders with fair and reasonable value for the Company at this time. PETRONAS will bring great financial strength and technical ability and I am sure they will make a valuable contribution to the UK and European gas market.”

Commenting on the Recommended Increased Offer, Roland Wessel, Chief Executive of Star Energy, said, “Star Energy has enjoyed exceptional support and cooperation with PETRONAS as a major shareholder over the last two years. With nine new gas storage projects on the blocks, we welcome the commitment PETRONAS has made to Star Energy’s strategy to build a significant multi-site gas storage business and look forward to the future with enthusiasm.”

Commenting on the Transaction, PETRONAS President & CEO Tan Sri Hassan Marican said, “PETRONAS is looking forward to working with Star Energy's management to ensure that Star Energy's key projects are developed in a timely and efficient manner. Delivery and optimisation of Star Energy's core projects will be an important element in ensuring that the long term security of gas supply in the UK is underpinned.”

Tags: PETRONAS