US private equity group lodges $13 billion binding takeover plan for Santos

GLNG project in Queensland. Supplied.

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

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%.

Following that announcement, Harbour then carried out five weeks of due diligence prior to submitting its revised offer.

Today’s proposal is unchanged in price from the previous bid in April, despite a strong rise in oil prices over that time.

“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.

In order for that to occur, the revised Harbour bid will have to be considered approved by the independent directors of Santos. The deal will also have to be signed off by the the Foreign Investment Review Board.

“The independent directors of Santos will consider the Revised Harbour Proposal and will update shareholders accordingly,” Santos said.

“There is no certainty that the Revised Harbour Proposal will result in an offer for Santos that is capable of being considered by shareholders. Santos shareholders are advised to take no action in relation to the Revised Harbour Proposal at this time.”

Santos in February posted a 21% rise in full year revenue of $3.17 billion. Underlying profit was $336 million, up from $63 million the year before.

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