Oil Search rejected unsolicited $6.5 billion bid from Santos
By Sonali Paul and Nikhil Nainan
Reuters
MELBOURNE (Reuters) - Oil Search rejected an unsolicited scrip-based takeover proposal from Santos Ltd that valued the Papua New Guinea-focused oil and gas producer at A$8.8 billion ($6.5 billion), the two companies said on Tuesday.
Santos made the approach on June 25, but the proposal was only revealed on Tuesday after Oil Search was asked a day earlier whether it had received any approaches on an investor call following the shock exit of the company s relatively new chief executive.
Oil Search said the proposal, which was assessed by its advisers, board and senior management, was determined not to be in the best interest of shareholders.
Provided by Dow Jones By David Winning SYDNEY Santos Ltd. said it approached Oil Search Ltd. about a possible merger last month, but its proposal to create an energy company with a market value of 22 billion Australian dollars (US$16.1 billion) was rejected. Santos said it offered 0.589 of its own shares in exchange for each Oil Search share on issue. A deal would have led to Santos shareholders owning 63% of the combined company, with Oil Search investors holding the remaining stock. The proposal implied a value of A$4.25 for each Oil Search share, Santos said, representing a 16% premium to the stock s closing price on Monday.
Oil Search rejected proposal on value and terms
Santos looks to engage further amid turmoil at Oil Search
Oil Search shares jump 8%, Santos falls 4%
MELBOURNE, July 20 (Reuters) - Oil Search (OSH.AX) rejected an unsolicited takeover proposal from Santos Ltd (STO.AX) valuing the Papua New Guinea-focused oil and gas producer at A$8.8 billion ($6.5 billion), but both companies said on Tuesday they wanted to pursue further talks.
Oil Search said the offer was not in the best interests of shareholders, but its shares rose 8% after both companies said it made sense to create a group that would rival Australia s top independent gas producer Woodside Petroleum (WPL.AX) in market value.
Oil Search said the offer was not in the best interests of shareholders.
MELBOURNE: Oil Search rejected an unsolicited takeover proposal from Santos Ltd that valued the Papua New Guinea-focused oil and gas producer at A$8.8 billion ($6.5 billion), the two companies said on Tuesday.
Oil Search said the offer was not in the best interests of shareholders, but its shares rose 7% after Santos said it still wanted to pursue talks to create a group that would rival Australia s top independent gas producer Woodside Petroleum in market value.
The approach comes at a tricky time for Oil Search as it is searching for a new chief executive to replace Keiran Wulff, who quit on Monday following just 17 months in the job due to ill health and a whistleblower complaint. It also just put on hold a final decision on a $3 billion oil project in Alaska.
Oil Search Rejects $6 5B Takeover Offer from aogdigital.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from aogdigital.com Daily Mail and Mail on Sunday newspapers.