Santos rejects 'opportunistic' take-over offer

Santos has rejected an indicative, highly conditional and non-binding proposal from Scepter, a private Middle East-based firm which has proposed to acquire all of Santos for a cash consideration of $A6.88 per share.

Santos’s board has rejected the proposal, which it says is “opportunistic in nature” and “does not reflect the fair underlying asset value of the company”.

Santos also advised that the proposal was also subject to numerous conditions, some of which would be “adverse to Santos’ continued evaluation of other alternatives in its current strategic review process.”

Santos has been advised by Scepter that it is a direct investment business whose stakeholders include a standing syndicate of ruling families, ultra-high-net-worth industrialists and sovereign wealth funds.

Santos announced on 21 August 2015 that it would conduct a thorough strategic review of all options to restore and maximise shareholder value. The strategic review is ongoing, and will continue to consider all proposals which deliver appropriate value and certainty for shareholders.

The Australian oil and gas major recently announced the first shipment of liquefied natural gas (LNG) from its $US18.5 billion GLNG project has left Curtis Island bound for South Korea.

The first cargo is being carried by the Malaysian-owned LNG ship Seri Bakti and will be delivered to South Korea in the coming weeks.

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