Santos gets $13.8b takeover offer from Harbour Energy

Lloyd Doyle
May 17, 2018

Santos Ltd said on Friday that USA -based suitor Harbour Energy has made a $10.36 billion binding offer for the company, pitched at the same price as an indicative proposal last month.

The offer price is $US4.98 per share which values Santos at around $13.7 billion. It follows the indicative, conditional takeover bid submitted by Harbour on April 3 which saw Santos shares rise by 21%.

Santos revealed Thursday it had received a binding, conditional proposal from Harbour which followed five weeks of due diligence since the United States company tabled its initial non-binding proposal.

USA private firm Harbour Energy has revised its terms and submitted a binding but conditional proposal for the takeover of Santos (ASX:STO).

Santos said it would consider the offer, which had the same US dollar value as a previous indicative bid from Harbour, and urged shareholders to take no action.

Santos shares dipped 2 percent to sit below the offer price, with analysts suggesting the company may reject the bid as too low.

It added there was still no guarantee the proposal would result in an offer capable of being considered by shareholders.

The proposed takeover will also be subject to approval by Australia's Foreign Investment Review Board should it move ahead. "Santos shareholders are advised to take no action in relation to the Revised Harbour Proposal at this time". Underlying profit was $336 million, up from $63 million the year before.

Other reports by Iphone Fresh

Discuss This Article