Woodside withdraws Oil Search offer

Oil Search's Kutubu Central Processing facility in Papua New Guinea

Oil Search's Kutubu Central Processing facility in Papua New Guinea

Woodside has withdrawn its AU$11.6 billion proposal to acquire Oil Search.

On 3 September 2015 Woodside provided Oil Search with a proposal to merge the companies through a scheme of arrangement. Oil Search rejected the proposal on the basis that the offer undervalued the company.

At the time, Oil Search’s chairman, Mr Rick Lee said “The Board of Oil Search believes our company is in a very strong position, both operationally and financially. We have a low cost, high quality, production base which is generating strong cash flows and excellent growth opportunities, with the proposed PNG LNG Train 3 and Papua LNG among the most competitive new developments in the world.

“If any proposals are tabled in the future that reflect compelling value for Oil Search shareholders, we will engage on them. Clearly this proposal falls well short of that test.”

Woodside is not pursuing any alternative transactions to combine the businesses.

Oil Search shares opened at AU$8.04 on 7 December and AU$6.32 on 8 December. Woodside Petroleum opened at AU$29.10 on 7 December and AU$27.39 on 8 December.

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