A consortium led by an Abu Dhabi National Oil Company subsidiary has launched a bid of almost $30 billion to take over oil and gas producer Santos.
Santos’ bulging energy portfolio includes a raft of assets in Queensland, where it is part of the joint venture behind the Gladstone LNG (GLNG) plant.
Santos’ bulging energy portfolio includes a raft of assets in Queensland, where it is part of the joint venture behind the Gladstone LNG (GLNG) plant.
It also operates that project’s upstream gas fields in the Bowen and Surat basins and has interests in the Cooper and Eromanga basins in the south-west.
Known as the XRG Consortium, the group behind the bid for ASX-listed Santos includes XRG PJSC (a subsidiary of Abu Dhabi National Oil Company), Abu Dhabi Development Holding Company (ADQ) and Carlyle.
It proposes the acquisition of all of the ordinary shares on issue in Santos for US$5.76 (about $8.89) per share.
If successful, the XRG-led consortium said it intended to maintain Santos’ headquarters in Adelaide, its brand, and operational footprint in Australia and key international operating hubs.
It said it aimed to; “Invest in Santos’ growth and further development of its gas and LNG focused business which will provide reliable and affordable energy and low carbon solutions to customers in Australia, the Asia Pacific and beyond. This will reinforce Australia’s position as a responsible energy partner and contributor to domestic and regional energy security.”
The Santos board will recommend shareholders accept the XRG offer in the absence of a superior proposal and subject to an independent expert concluding that the transaction is fair and reasonable.
It is granting the bidder access to confidential information and due diligence on the company in order to finalise the offer.