REFILE-UPDATE 2-Anzon agrees to $638 mln offer from Arc Energy

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By Fayen Wong

SYDNEY, Oct 24 (Reuters) - Australian oil and gas producer Anzon Australia Ltd AZA.AX agreed to a A$708 million ($638 million) takeover bid by Arc Energy Ltd ARQ.AX, which would create one of the country's largest independent energy companies.

Anzon, which put itself up for sale last month after receiving a number of takeover approaches, said Arc's mix of cash and share alternatives valued Anzon's shares at A$1.87 per share.

"This is a good opportunity for Anzon and Arc. The merger will create an entity with larger scale and a diversified production profile which investors will find appealing," said John Young, a senior resource analyst at Wilson HTM.

"I think Arc's offer is at reasonable value."

Shares in Anzon, which has a market value of A$663 million ($594.1 million), rose 4.2 percent to A$1.87 by 0520 GMT, suggesting investors were not expecting a higher offer.

Arc Energy's shares fell 2.8 percent to A$1.55.

Anzon's lucrative assets and surging oil and gas prices have lured a number of suitors, with Origin Energy (ORG.AX) and Santos Ltd (ORG.AX) among those said to be potential bidders, according to local media reports.