US Lone Star gets FIRB Greenlight for Sino Gas Takeover

US private equity firm Lone Star has been granted approval by the Foreign Investment Review Board for its A$530mn ($402mn) takeover bid of Australia-listed China-focused Sino Gas, the takeover target said July 17.

Sino announced it had received the bid May 31 and the acquisition would see its shareholders receive A$0.25 per share, which compares to Sino’s close price of A$0.21 per share on May 30.

“While the Sino Gas Directors remain of the view that the business and assets have significant potential, they acknowledge that the cash consideration provides shareholders with cash certain value now versus the future risks and uncertainties associated with the business,” Sino Gas’ managing director Glenn Corrie said at the time of announcing the bid.

Sino is the operator of the Chinese Linxing and Sanjiaobei production sharing contracts in the Ordos Basin, China’s largest gas producing basin. The company’s current interest in the Linxing PSC with CUCBM is 70% and 49% of the Sanjiaobei PSC held with PetrolChina subsidiary PCCBM.

Lone Star invests globally in a range of different assets classes, including the oil and gas industry.