Abu Dhabi National Oil makes $28.9b play for | Australian Markets
Abu Dhabi National Oil is making a play for Australian vitality main Santos, with an all-cash offer that values the company at $US18.7 billion ($28.9b)
Santos on Monday stated Adnoc had provided it $US5.76 ($8.89) a share — a 28 per cent premium to the closing price on Friday — and the board has backed the deal over the weekend.
Santos’ stock has risen in latest months on hypothesis that Middle Eastern vitality producers together with Adnoc and Saudi Aramco have been circling the Adelaide-based company.
Santos has long been a goal for rivals.
In 2018, it rejected a number of provides from US-based Harbour Energy whereas talks with Perth-based Woodside Energy broke down final 12 months.
Some buyers have urged the company to separate its coveted LNG property from oil operations in Alaska and its home gasoline business in Australia to money in on increased valuations.
Santos stated the indicative proposal could be the “final non-binding indicative offer”.
It additionally revealed the bid had come after two confidential, non-binding and indicative proposals from Adnoc’s overseas investment unit XRG — one on March 21 priced at $US5.04 ($8) and on March 28 at $US5.42 ($8.60).
Any deal could be subject to approval from the Foreign Investment Review Board and a host of regulators within the US and Papua New Guinea.
“The Santos board confirms that, subject to reaching agreement on acceptable terms of a binding scheme implementation agreement, it intends to unanimously recommend that Santos shareholders vote in favour of the potential transaction, in the absence of a superior proposal and subject to an independent expert concluding, and continuing to conclude, that the potential transaction is fair and reasonable and in the best interests of Santos shareholders,” it stated.
Goldman Sachs and JB North & Co are appearing as financial advisers to Santos. Rothschild & Co is appearing as impartial board adviser. Herbert Smith Freehills Kramer is appearing as legal adviser to Santos.
More to come back.
Stay up to date with the latest news within the Australian markets! Our web site is your go-to source for cutting-edge financial news, market trends, financial insights, and updates on native trade. We present each day updates to make sure you have entry to the freshest info on Australian stock actions, commodity costs, currency fluctuations, and key financial developments.
Explore how these trends are shaping the longer term of Australia’s financial system! Visit us repeatedly for essentially the most participating and informative market content material by clicking right here. Our fastidiously curated articles will keep you knowledgeable on market shifts, investment methods, regulatory adjustments, and pivotal moments within the Australian financial panorama.
