• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 8 hours Satellite Moons to Replace Streetlamps?!
  • 1 hour U.S. Shale Oil Debt: Deep the Denial
  • 2 days US top CEO's are spending their own money on the midterm elections
  • 1 day EU to Splash Billions on Battery Factories
  • 4 hours The Dirt on Clean Electric Cars
  • 2 hours Owning stocks long-term low risk?
  • 2 days The Balkans Are Coming Apart at the Seams Again
  • 8 hours Can “Renewables” Dent the World’s need for Electricity?
  • 2 days Uber IPO Proposals Value Company at $120 Billion
  • 2 days 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 2 days A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 2 days OPEC Is Struggling To Deliver On Increased Output Pledge
  • 20 hours The end of "King Coal" in the Wales
Oil Market Loses Its Bullish Edge

Oil Market Loses Its Bullish Edge

Bullish sentiment has dominated oil…

Santos Agrees To Discuss $10.4B Takeover Bid From U.S. Harbour Energy

LNG exports

Australia’s oil and gas producer Santos said on Tuesday that it would engage in talks with U.S. Harbour Energy Ltd, after receiving the fourth unsolicited takeover bid from the U.S. firm since August 2017, with the latest bid raising the offer to US$10.4 billion (13.5 billion Australian dollars).

Santos has allowed the U.S. firm to start a due diligence after receiving the offer last week. The indicative offer price is US$4.98 per Santos share, equivalent to A$6.50 Australian dollars, the Australian firm said, noting that this was the fourth unsolicited bid it had received since August 2017. In each of the previous three bids, one in August last year, and two in March this year before the fourth offer, Harbour Energy has increased the indicative per-share offer. With the latest offer, “the Santos board considers that, based on the indicative offer price of A$6.50 per share, it is in the interests of shareholders to engage further with Harbour,” the Australian company said.

“There is no certainty at this time that the Harbour Proposal will result in an offer for Santos that is capable of being considered by shareholders,” Santos said.

If the parties reach a deal, Harbour would get access to low-cost oil and to LNG projects in Australia—enabling it to take advantage of the soaring natural gas demand in Asia. One potential setback for the acquisition could be the political and regulatory risk, as Australia’s energy supply shortage—especially gas—has raised fears that foreign-owned companies could ignore domestic needs to pursue profits overseas.

Related: Europe’s Biggest Gas Field To Close Over Quake Risk

“Santos has a leading natural gas business in Australia and interests in three operating LNG projects – two in Australia and one in Papua New Guinea – along with an established operating capability and a proven, experienced management team,” Harbour Energy CEO Linda Z. Cook said.

“Our focus for Santos going forward would be in natural gas and LNG in particular,” Cook said in an interview with Bloomberg on Tuesday.

Analysts see Harbour Energy’s latest sweetened takeover offer as a “knock-out bid”.

“We do see this latest Harbour Energy approach as a knock-out bid, one which the board of Santos will struggle to turn down,” RBC Capital Markets analyst Ben Wilson said in a note to clients, as carried by Bloomberg.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


x

Join the discussion | Back to homepage

Leave a comment
  • Bill Simpson on April 04 2018 said:
    Australians are hostage to big corporations even worse than Americans are. Their electricity goes off in Australia, while the giant corporations sell their natural gas to the Chinese.
    Like someone said, people get the government they deserve. The masses aren't too bright.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News