Harbour firms up $10.2bn Santos offer

Galtero Lara
May 17, 2018

Oil & gas company Santos has received a binding, conditional proposal from United States private equity group Harbour Energy to purchase 100% of the shares in the company.

The bid, which would be the biggest takeover of an Australian oil and gas producer if successful, values the gas producer at $US4.98 ($6.63) a share and follows four unsolicited approaches from Harbour.

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.

However, major Chinese shareholders ENN Ecological Holdings (ENN) ENN and Hony Capital will be offered the option to roll-over their existing Santos shares into a Harbour investment vehicle and subscribe for new shares.

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The Revised Harbour Proposal involves no change in price and a number of significant changes to the transaction structure previously announced.

"The Revised Harbour Proposal is subject to conditions, including completion of final confirmatory due diligence and entry into a scheme implementation deed between Santos and Harbour", Santos said in an announcement to the ASX.

There is no certainty that the Revised Harbour Proposal will result in an offer for Santos that is capable of being considered by shareholders.

The independent directors of Santos will consider the Revised Harbour Proposal and will update shareholders accordingly. Santos shareholders are advised to take noaction in relation to the Revised Harbour Proposal at this time.

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