South Australian government threatens to intervene in oil giant Santos $30 billion Abu Dhabi takeover bid
UAE investors, led by XRG, offered nearly $30 billion to acquire Australian oil and gas producer Santos at $8.99 per share, a 28% premium. Following the deal announcement, the South Australian government threatened to intervene if the takeover bid for the state's largest company is "not in the interests of South Australians."
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United Arab Emirates investors have made a cash bid of almost $30 billion to take over Australian oil and gas producer Santos. The consortium of investors, led by XRG, an arm of the government-owned Abu Dhabi National Oil Company, has offered $8.99 cash per share for the acquisition of Santos. According to 9News, it is a 28 percent premium on shareholders' stocks compared to the $6.96 closing price on Friday.Following the deal announcement, the South Australian government threatened to intervene if the takeover bid for the state's largest company is "not in the interests of South Australians," according to ABC News. Santos told the stock exchange on Monday that it had received a takeover offer from the consortium.Speaking about the takeover bid, Energy and Mining Minister Tom Koutsantonis said that if the deal is not in the interests of South Australians, the South Australian government will act accordingly. He also said that having Santos headquartered in Adelaide was of "strategic and vital importance to the state." "We're going to fight to keep it here," he added. Koutsantonis further stated that the takeover was "not a foregone conclusion." He said the state government recently passed legislation that "requires our consent for change of licence ownership in the resources sector.""We've got legislation that puts us at the table," he said. "That means we're going to use that legislation, and if the deal is not in the interests of South Australians, the South Australian government will say so and act accordingly." If this deal is not in the interests of Australia, then the Commonwealth government will look at it and have a say.Besides XRG, the consortium also includes Abu Dhabi Development Holding Company and US private equity group Carlyle. The investors issued the non-binding indicative proposal on Friday. The offer values the oil and gas company at about $28.8 billion.The board of South Australia's largest company has given the indication that it intends to unanimously recommend shareholders to vote in favour of the potential transaction in the absence of a better offer and subject to arriving at a final agreement, ABC News reported. The agreement is also subject to approval from the Foreign Investment Review Board, the Australian Securities and Investments Commission, and the National Offshore Petroleum Titles Administrators, as well as other authorities in Papua New Guinea and the US.Santos was founded in 1954 as South Australia and Northern Territory Oil Search. It is a top-20 company on the ASX. The company has oil and gas assets in the Cooper Basin in far northeastern South Australia, Gladstone in Queensland, and across Western Australia and Papua New Guinea.XRG has said that it has intentions to keep Santos's headquarters in Adelaide and its "brand and operational footprint in Australia and key international operational hubs." The Abu Dhabi company also said it intended to "work closely with the existing management team to accelerate growth and support local employment and the communities where Santos operates."
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Time of India
7 hours ago
- Time of India
South Australian government threatens to intervene in oil giant Santos $30 billion Abu Dhabi takeover bid
UAE investors, led by XRG, offered nearly $30 billion to acquire Australian oil and gas producer Santos at $8.99 per share, a 28% premium. Following the deal announcement, the South Australian government threatened to intervene if the takeover bid for the state's largest company is "not in the interests of South Australians." Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Santos Assets United Arab Emirates investors have made a cash bid of almost $30 billion to take over Australian oil and gas producer Santos. The consortium of investors, led by XRG, an arm of the government-owned Abu Dhabi National Oil Company, has offered $8.99 cash per share for the acquisition of Santos. According to 9News, it is a 28 percent premium on shareholders' stocks compared to the $6.96 closing price on the deal announcement, the South Australian government threatened to intervene if the takeover bid for the state's largest company is "not in the interests of South Australians," according to ABC News. Santos told the stock exchange on Monday that it had received a takeover offer from the about the takeover bid, Energy and Mining Minister Tom Koutsantonis said that if the deal is not in the interests of South Australians, the South Australian government will act accordingly. He also said that having Santos headquartered in Adelaide was of "strategic and vital importance to the state." "We're going to fight to keep it here," he added. Koutsantonis further stated that the takeover was "not a foregone conclusion." He said the state government recently passed legislation that "requires our consent for change of licence ownership in the resources sector.""We've got legislation that puts us at the table," he said. "That means we're going to use that legislation, and if the deal is not in the interests of South Australians, the South Australian government will say so and act accordingly." If this deal is not in the interests of Australia, then the Commonwealth government will look at it and have a XRG, the consortium also includes Abu Dhabi Development Holding Company and US private equity group Carlyle. The investors issued the non-binding indicative proposal on Friday. The offer values the oil and gas company at about $28.8 board of South Australia's largest company has given the indication that it intends to unanimously recommend shareholders to vote in favour of the potential transaction in the absence of a better offer and subject to arriving at a final agreement, ABC News reported. The agreement is also subject to approval from the Foreign Investment Review Board, the Australian Securities and Investments Commission, and the National Offshore Petroleum Titles Administrators, as well as other authorities in Papua New Guinea and the was founded in 1954 as South Australia and Northern Territory Oil Search. It is a top-20 company on the ASX. The company has oil and gas assets in the Cooper Basin in far northeastern South Australia, Gladstone in Queensland, and across Western Australia and Papua New has said that it has intentions to keep Santos's headquarters in Adelaide and its "brand and operational footprint in Australia and key international operational hubs." The Abu Dhabi company also said it intended to "work closely with the existing management team to accelerate growth and support local employment and the communities where Santos operates."
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Business Standard
8 hours ago
- Business Standard
Abu Dhabi's Adnoc makes $19-billion takeover bid for LNG producer Santos
Abu Dhabi National Oil Co. has made an $18.7 billion offer for Australian fossil fuel producer Santos Ltd., in one of the most audacious overseas moves yet by the Middle Eastern company as it seeks to expand its production of liquefied natural gas. Adnoc's investment arm XRG PJSC joins peers including Saudi Aramco in targeting LNG, tapping the potential of one of the fastest-growing fossil fuel markets. It now stands on the brink of a deal that would hand it stakes in major operations in Australia and Papua New Guinea — if it can secure regulatory approvals. Santos Chief Executive Officer Kevin Gallagher has rebuffed several approaches from peers over the last few years, and has come under fire from impatient investors. Now the board of Australia's second-largest fossil fuel producer has recommended Adnoc's cash offer of $5.76 (A$8.89) per share — a 28 per cent premium to Friday's close. 'Credit to Gallagher for extracting such a premium offer – he will have earned the payout of his ensuing incentives in doing so,' Saul Kavonic, an energy analyst at MST Marquee, said in a note. 'Gallagher has found his escape parachute and it's made of gold.' Santos shares closed 11 per cent higher on Monday at A$7.72 a piece. That's the biggest daily jump since November 2020, but the stock remains shy of the Adnoc offer, in large part because of the hurdles that lie ahead, including clearance from the Australian authority that reviews foreign investments. 'It's a great price,' Fereidun Fesharaki, founder and chairman of energy consulting group FGE told Bloomberg TV. 'XRG is a global entity which wants to create a lot of LNG and upstream capability inside the company. My only question is whether Australia's Foreign Investment Review Board will accept this or not, and I think it will be challenging for them to approve it. In the past they have been very reluctant to make these approvals.' Fesharaki added that one option would be to keep the current management and Santos as an independent player. 'If you can convince them that this will function as an Australian company with foreign ownership, they might go along with it,' he added. A spokesman for the Treasury Department said in a statement that foreign investment matters are reviewed on a case-by-case basis to ensure they aren't contrary to national interest or security. Santos boss Gallagher has spearheaded an aggressive investment plan to increase output by about 50 per cent by the end of the decade, which at times had frustrated investors who wanted higher returns instead. That strategy appears to have paid off, ultimately luring in a consortium searching for high growth potential. The consortium led by Adnoc's XRG also includes Abu Dhabi Development Holding Co. and Carlyle Group Inc. XRG has been on the hunt for gas and chemicals deals as it targets an $80 billion enterprise value. 'Adnoc's XRG is paying a premium to enter the global LNG game,' said MST Marquee's Kavonic. 'The proposed transaction is aligned with XRG's strategy and ambition to build a leading integrated global gas and LNG business,' the Adnoc unit said in a statement. The company plans to 'invest in Santos' growth and further development of its gas and LNG focused business,' it said. Santos has long been an attractive target for rivals. In 2018, the Adelaide-based company rejected multiple offers from US-based Harbour Energy Ltd., while talks with Woodside Energy Group Ltd. broke down last year. Bloomberg News reported last year that Adnoc was in the early stages of evaluating Santos as a possible acquisition target as it seeks to ramp up its gas investments overseas. Some investors have urged Santos to split its coveted LNG assets from oil operations in Alaska and its domestic gas business in Australia to cash in on higher valuations. Goldman Sachs Group Inc. and JB North & Co. are acting as financial advisers to Santos; Rothschild & Co. is acting as independent board adviser. The Abu Dhabi consortium has engaged JPMorgan Chase & Co. as its adviser. --With assistance from Keira Wright and Haslinda Amin.
New Indian Express
16 hours ago
- New Indian Express
Abu Dhabi state oil firm makes USD 18.7 billion bid for Australia's Santos
SYDNEY: Abu Dhabi's state-owned oil company is leading an USD 18.7 billion takeover bid for Australian energy group Santos as it seeks to build a global natural gas giant, the two firms said Monday. Santos' board said it planned to unanimously recommend the Abu Dhabi National Oil Company's offer to shareholders if it can agree on the takeover terms. Adelaide-based Santos has operations in Australia, Papua New Guinea, East Timor and the United States, and is a major supplier of liquefied natural gas in Australia and Asia. The Abu Dhabi National Oil Company offered USD 5.76 a share in a bid for all of Santos' outstanding stock, valuing the entire company at USD 18.7 billion. The price per share is 28 percent higher than Santos' closing level on Friday. It was the "final, non-binding" offer from the Middle East oil company, which had offered two, lower confidential bids in March, Santos said. Santos' stock was more than 11 percent higher in afternoon trade on the Australian Securities Exchange. The Abu Dhabi-based, state-owned energy firm made its bid via a consortium led by its own subsidiary, XRG. Other members of the consortium include Abu Dhabi Development Holding Company and global investment firm Carlyle. In a statement, XRG said it aimed to build on Santos' legacy as a trusted energy producer, "strengthening domestic and international energy security." "The proposed transaction is aligned with XRG's strategy and ambition to build a leading integrated global gas and LNG business," it said. Santos' board said it intended to "unanimously recommend" that shareholders vote in favour of the deal if it can agree on terms and there is no better offer.
