US-based Harbour Energy has launched a revised bid to takeover Australian oil and gas producer Santos for $10.8bn.
Image: Santos is an Australian oil and gas producer headquartered in Adelaide. Photo: courtesy of Santos Ltd.
This is the fifth such offer from Harbour Energy in a span of nine months, reported Reuters.
As per the latest offer, the US firm through its Australian subsidiary – Harbour Energy Australia proposes to acquire 100% of Santos shares for $5.21 per share.
Santos, in a statement, said: “The Revised Harbour Proposal is conditional on Santos undertaking additional hedging of oil-linked production in 2018 of c.30% and changes to hedging in 2019.
“In addition, Harbour has indicated the offer price would be increased to a US dollar amount equivalent to A$7.00 per share if Santos agrees to hedge 30% of oil-linked production in 2020.”
The revised offer comes just two days after Harbour Energy proposed to pay $5.12 per share and prior to that on 17 May, the company offered a price of $4.98 per share to the Australian oil and gas firm.
Santos said that its independent directors will review the revised proposal before updating the company’s shareholders.
It also said that the revised offer from Harbour Energy is subject to conditions like completion of final confirmatory due diligence and entry into a scheme implementation deed by the two parties.
The transaction will have to be recommended by the independent directors of the Santos board and also Australian Foreign Investment Review Board (FIRB) and shareholder approvals.
In November 2017, Santos rejected a A$9.5bn ($7.2bn) takeover bid from Harbour Energy, on the basis that the offer undervalues the company.
This offer came almost two years after Santos turned down a A$7.14bn ($5.37bn) takeover offer from investment firm Scepter Partners.
Earlier this month, Santos entered into a $205m deal to sell some of its assets in Southeast Asia to Ophir Energy.
The transaction includes producing assets across Vietnam and Indonesia alongside exploration and appraisal assets in Malaysia, Vietnam and also in Bangladesh.