Santos Limited rebuffs Harbour Energy’s USD 14.4 bn acquisition offer
Category: #world  By Saipriya Iyer  Date: 2018-05-24
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Santos Limited rebuffs Harbour Energy’s USD 14.4 bn acquisition offer

Santos Limited, an Australia-based oil, gas, & energy producer, has officially rejected the USD 14.4 billion acquisition bid of Harbour Energy, a U.S. based firm pursuing investments in upstream & midstream energy assets. If sources are to be believed, the offer proved to be too low for Santos and of higher risk, devaluing the firm. Apparently, Santos had emphasized on these pointers as its reason for terminating discussions related to the acquisition.

As per reliable reports, Santos’ board of directors were not satisfied with the U.S. firm’s dependence on a higher level of debt funding. According to them, this move signified that its investors will meet with an unequal treatment from Harbour post the acquisition.

The offer worth USD 14.4 billion had been the final offer made by Harbour to Santos. Earlier, the firm had made nearly four offers to Santos within a span of nine months. The company seemingly had been making tremendous efforts to buy out the Adelaide headquartered firm since August 2017. However, recently it had increased its bid to nearly USD 7 per share for acquiring Santos.

Santos also stated that the Harbour’s private equity-supported structure had deeply influenced its rejection. The company’s official statement also claims that the acquisition bid was subject to various criteria that encompassed approval from the Foreign Investment Review Board (FIRB). Keith Spence, the chairperson of Santos Limited, has asserted that the firm has a well-structured strategy, robust leadership, and excellent opportunities of expanding its business. He further emphasized that the firm is likely to deliver a superior value to its investors over the coming years.

The acquisition bid would have had to receive the approval from nearly 75% of Santos’s stakeholders, including Chinese shareholders such as Hony Capital & ENN if it had to be successful. Apparently, both these firms are shareholders of Santos and have an aggregate interest of 15% in its shares.



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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