Harbour launches $10.3B takeover bid for Santos

Australia’s Santos Energy has received an unsolicited, non-binding, indicative, and conditional takeover offer from Harbour Energy.

According to Santos, the offer, launched on March 29, is for Harbour to acquire a 100 percent of Santos shares by way of a scheme of arrangement.

The indicative offer price is US$4.98 per share, which in Australian dollars, is equivalent to A$6.50. According to Bloomberg, the offer places Santos value at $10.3 billion.

Harbour has indicated that funding for the transaction is to be provided in the form of US$7.75bn of debt that is to be underwritten by J.P. Morgan and Morgan Stanley and the balance in equity from Harbour, other EIG managed funds and Mercuria Global Energy.

The Harbour Proposal follows three prior unsolicited proposals from Harbour, being: August 14,  2017 (indicative offer price: A$4.55 per share); March 22, 2018 (indicative offer price: A$6.25 per share); and March 27, 2018 (indicative offer price: A$6.37 per share).

“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. Accordingly, Harbour has entered into a confidentiality agreement with Santos to allow Harbour the opportunity to undertake confirmatory due diligence,” Santos board said.

To remind, back in November 2017, reports emerged of Santos holding takeover talks with Harbour.

At the time, Santos dismissed the reports saying it was “not currently engaged in discussions with, and has not received a current proposal from, Harbour Energy regarding a change of control transaction for Santos.”

Santos had previously dismissed Harbour’s August 2017 A$9.5 billion ($7.2 billion) offer, deeming the indicative price inadequate and the sources of funds uncertain.

Offshore Energy Today Staff

Share this article

Follow Offshore Energy Today

Events>

<< Jan 2019 >>
MTWTFSS
31 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

Fuel Cell Expo 2019

FC EXPO is world’s largest show for hydrogen & fuel cell…

read more >

LNG Bunkering Summit 2019

LNG Bunkering Summit will cover the obstacles facing both the shipping and port communities…

read more >

Egypt Petroleum Show

This event will feature 500+ regional & international exhibiting companies from over 35 countries…

read more >

IoT in Oil & Gas 2019

The IoT in Oil & Gas 2019 Conference will continue to focus on helping operators…

read more >

Jobs>

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply

Looking to fill a job opening?

By advertising your job here, on the homepage of OffshoreEnergyToday.com, you'll reach countless professionals in the sector. For more information, click below...

apply