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Court approves Arrow's Dart Energy spin-off

The Federal Court has approved Arrow Energy's spin off of its Dart Energy unit, which will be followed by a $3.4 billion joint takeover of Arrow by Royal Dutch Shell Shell and PetroChina.

Under the demerger, shareholders will receive one Dart share for every two Arrow shares they hold.

Dart will be listed on the Australian Securities Exchange and will consist of Arrow's overseas coal seam gas assets, its interest in Bow Energy, LNG and Apollo Gas, and farm-in rights to two of Apollo's tenements.

The demerger scheme of arrangement will become effective on Monday after Arrow lodges the Federal Court orders with the Australian Securities and Investments Commission.

After the demerger is complete, energy giants Shell and PetroChina will takeover Arrow for $4.70 per share, valuing the target at $3.45 billion.

The final bidder conditions were satisfied yesterday when the National Development and Reform Commission of China approved the takeover bid and a waiver was received from the State Administration of Foreign Exchange of China.

Dart is expected to commence trading on the ASX on July 22 on a deferred settlement basis, with normal trading of its shares to follow on August 6.

Shares in Arrow were steady at $4.94 at 10.25am.