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Santos receives takeover bid

The indicative offer from Harbour comprises a cash offer price of US$4.70 per share (AU$6.13) plus a special dividend of US$0.28 per share (AU$0.37) which is expected to be fully franked.

Santos has established a board committee – made up of Chairman Keith Spence, Managing Director Kevin Gallagher and the chair of each of the board’s standing committees – to consider the approach and make recommendations to the Santos board.

“The Santos board considers that, based on the indicative offer price of AU$6.50 per share, it is in the interests of shareholders to engage further with Harbour,”? read the statement released by Santos this morning.

As such, Harbour has entered into a confidentiality agreement with Santos to allow for confirmatory due diligence.

The offer is still subject to a number of conditions, including:

  • Regulatory approvals, including approval from the Foreign Investment Review Board
  • A minimum of 15 per cent (max. 20 per cent) of existing Santos shares outstanding rolling over into unlisted shares of a special purpose company (Harbour Rollco) that will remain invested in Santos
  • Entry into binding debt financing commitments
  • Completion of confirmatory due diligence.

Rothschild & Co., J.B. North & Co and Deutsche Bank are acting as financial advisors to Santos and Herbert Smith Freehills is acting as legal advisor.

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