Sunshine Gas Shares Jump After Queensland Gas Takeover Offer

By Angela Macdonald-Smith

Aug. 21 (Bloomberg) -- Sunshine Gas Ltd. rose the most in two months in Sydney trading after agreeing to a takeover offer from Queensland Gas Co. valuing it at a minimum of A$837 million ($731 million) based on yesterday's closing share prices.

Brisbane-based Sunshine advanced as much as 53 cents, or 24 percent, to A$2.73. Queensland Gas, also based in Brisbane, fell as much as 6.3 percent to A$4.05, lowering the value of the takeover offer, in which shareholders can accept either all in stock or a mix of stock and cash.

Queensland, Australia's third-biggest fuel-consuming state, will be the major contributor to demand growth and is set to become the biggest energy user by 2012, the government's commodities forecaster said in December. Queensland Gas said yesterday it will primarily use Sunshine's reserves to meet rising local demand, as well as to bolster a planned fuel-export project.

To contact the reporter on this story: Angela Macdonald-Smith in Sydney at amacdonaldsm@bloomberg.net