Tuesday, March 19, 2024 | Ramadan 8, 1445 H
scattered clouds
weather
OMAN
27°C / 27°C
EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Santos shares soar as Harbour Energy bids for $10.3bn cash

1296484
1296484
minus
plus

SYDNEY: Shares in Australian energy giant Santos soared on Tuesday after US private investment company Harbour Energy Tuesday made a Aus$13.5 billion ($10.3 billion) all-cash offer for the firm.


Santos, a major oil and natural gas firm with interests notably in Papua New Guinea, said it had received a proposal of $4.98 per share.


This was equivalent to Aus$6.50, representing a 28 per cent premium to its closing price before the Easter break.


Its shares surged 16.17 per cent on the news to close at Aus$5.89, easing from a high of Aus$6.20.


“The Santos board considers that, based on the indicative offer price of A$6.50 per share, it is in the interests of shareholders to engage further with Harbour,” the company said in a statement.


Harbour, which will now carry out due diligence, is planning to fund the deal with $7.75 billion of underwritten debt.


The move comes five months after Santos rejected an unsolicited Aus$4.55 per share bid by the US investor, saying it undervalued the company.


While Santos has stakes in oil and gas production in several countries, including Indonesia and Vietnam, its main assets include 13.5 per cent of Exxon Mobil’s massive liquefied natural gas venture in Papua New Guinea.


It also has operations throughout Australia.


Harbour, an energy investment vehicle formed by EIG to acquire high-quality upstream and midstream assets globally, said it plans to expand Santos by investing further in existing facilities and adding other assets.


“We are pleased with the decision of the Santos board to engage further and look forward to progressing this transaction towards completion,” said chief executive Linda Cook.


— AFP


SHARE ARTICLE
arrow up
home icon