Central allows Macquarie due diligence

The route of Jemena's Northern Gas Pipeline.

The route of Jemena's Northern Gas Pipeline.

Central has agreed that Macquarie Group can conduct confidential due diligence following the Group’s takeover bid of the gas producer.

This comes with a view of Macquarie developing an improved proposal on its original bid earlier in the month for 100 per cent of Central at 17.5 cents per share.

The Board of Central determined that the proposal wasn’t in the best interests of the shareholders at the time, but remained open to an improved bid.

Macquarie is not bound to make formal offer and has no entitlement to any break fee if Central proceeds with another proposal.

Given Central’s capital need to fund the further development of its gas fields, in particular the Stairway Project ahead of the expected completion of Jemena’s Northern Gas Pipeline in 2018, the company has not agreed to any fetter on that process as a result of granting due diligence.

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