Camden. Gas explorer recommends $171m bid

Sydney Gas Ltd, coal seam gas explorer at Camden, said shareholders were unlikely to achieve a better return on their investment than the $171 million AGL Energy Ltd takeover offer, given the company's future capital requirements. The company said without the support of major shareholders it would unlikely obtain commercial underwriting of any capital raising in the current economic climate. Sydney Gas said proceeding with a rights issue without a commercial underwriting of the $60 million required over the next three years would require the support of major shareholders and would likely lead to a change of control without a premium bid. The company has recommended the all-cash bid of 42.5 cents per share from AGL Energy.