San­tos shares soar amid takeover bid

The Australian Energy Review - - NEWS - EL­IZ­A­BETH FABRI

SAN­TOS shares reached two year highs mid-novem­ber af­ter an­nounc­ing it had re­jected a $9.3 bil­lion of­fer from US pri­vate eq­uity group Har­bour En­ergy to ac­quire all shares in the com­pany.

Ac­cord­ing to San­tos, on 14 Au­gust the com­pany re­ceived a con­fi­den­tial, non-bind­ing and in­dica­tive pro­posal from Har­bour En­ergy to ac­quire all shares by scheme of ar­range­ment at a price of $4.55 per share, which it deemed “in­ad­e­quate” and the source of funds “un­cer­tain”.

On 16 Novem­ber, San­tos stock jumped 57c (13 per cent) to $4.95; the high­est shares had reached since the com­pany’s $2.5 bil­lion cap­i­tal rais­ing in Novem­ber 2015 af­ter it re­jected a con­di­tional $6.88 per share bid from Brunei and Uae-backed Scepter Part­ners.

Var­i­ous me­dia re­ports spec­u­lated Har­bour En­ergy was pre­par­ing to make an­other cash pro­posal of $5.30 a share in com­ing weeks.

How­ever, San­tos re­futed the claims stat­ing “it is not cur­rently en­gaged in dis­cus­sions with, and has not re­ceived a cur­rent pro­posal from, Har­bour En­ergy re­gard­ing a change of con­trol trans­ac­tion for San­tos.”

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