Santos Rejects Takeover Offer from Harbour Energy

Santos Rejects Takeover Offer from Harbour Energy

A takeover bid worth US$7.2 bn made by Harbour Energy has been turned down by Santos. Citing undervaluation, the Australian gas producer has said that the U.S. investment firm, Harbour Energy, had approached them in the month of August with an offer of US$4.55 per share through a scheme of arrangement.

Future Plans of Santos

The American investment firm is reportedly making plans to offer a bid of US$5.30 per share to Santos in the coming few weeks. Rubbishing the media speculation of any such offer, Santos stated that it is currently not in the position to have any talks with Harbour Energy and has not received any such offer from Harbour Energy.

Back in 2015, Santos has turned down an offer worth US$7.14bn made by Scepter Partners, another investment firm that is supported by Middle-eastern and Asian royalty. Santos, however, would sell of its plant of Gladstone Liquefied Natural Gas located in Queensland. Along with that, it also plans to give 11.5% of its stake in Darwin LNG facility that is operated by ConocoPhillips and 13.5% stake in Papua New Guinea LNG project, as reported by Bloomberg. ExxonMobil owns Papua New Guinea LNG project.

Gladstone Liquefied Natural Gas plant that was commissioned in the month of September, 2015 consists of a gas field development in the basins of Bowen and Surat, a two-train plant of LNG located in the Curtis Island and a gas transmission pipe of 420 km extending from the gas fields to Gladstone. Harbour Energy, on the other hand, has publicly announced its strategy to pursue its ambition of acquiring more and more oil and gas assets thereby strengthening its position globally.

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Ganesh Rajput

As one of the lead news writers on CMFE News, Ganesh’s specialization lies in the science and technology domains. His passion for the latest developments in cloud technology, connected devices, nanotechnology, and virtual reality, among others, shines through in the most recent industry coverage he provides. Ganesh’s take on the impact of digital technologies across the science, technology, and business domains gives his writing a fresh and modern outlook.

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