Oil Search Limited stock has eased from a ten-year high of $9.7 per share in May last year, to $6.7 per share this week.
“Oil Search Board intends to review the proposal and will update shareholders and the market in due course. The company wishes to emphasise that there is no guarantee that the binding proposal can be agreed between the parties,” today’s statement to the bourse said.
“While Oil Search will consider the proposal, it should be noted that Oil Search has a material equity position in the world class PNG LNG Project and attractive, low cost, LNG development opportunities, including the PNG LNG Train 3 expansion and the Papua LNG Project.”
The company added that with the above in mind, shareholders should be entitled to an offer that reflects the company’s potential.
Woodside confirmed the proposal in a statement, saying that under the proposal, Oil Search shareholders would receive all scrip consideration of 0.25 Woodside shares for every Oil Search share and become shareholders in the combined entity.