Latest news with #XRG-led
Nikkei Asia
19 hours ago
- Business
- Nikkei Asia
Abu Dhabi's ADNOC launches $18.7bn takeover bid for Australia's Santos
SYDNEY -- Australian oil and gas company Santos announced Monday that it has received a takeover offer worth $18.7 billion from a consortium led by international energy investment company XRG, a subsidiary of Abu Dhabi's state-owned oil company ADNOC. The XRG-led consortium, which includes Abu Dhabi Development Holding Company (ADQ) and U.S. investment firm Carlyle, has proposed a "final non-binding indicative offer" to acquire 100% of Santos stock for $5.76 per share in cash.
Nikkei Asia
a day ago
- Business
- Nikkei Asia
ADNOC launches $18.7bn takeover bid for Australia's Santos
SOPHIE MAK and SHAUN TURTON SYDNEY -- Australian oil and gas company Santos announced Monday that it has received a takeover offer worth $18.7 billion from a consortium led by international energy investment company XRG, a subsidiary of Abu Dhabi's state-owned oil company ADNOC. The XRG-led consortium, which includes Abu Dhabi Development Holding Company (ADQ) and U.S. investment firm Carlyle, has proposed a "final non-binding indicative offer" to acquire 100% of Santos stock for $5.76 per share in cash.
Nikkei Asia
a day ago
- Business
- Nikkei Asia
ADNOC launches $18.7 billion takeover bid for Australia's Santos
SYDNEY -- Australian oil and gas company Santos announced Monday that it has received a takeover offer worth $18.7 billion from a consortium led by international energy investment company XRG, a subsidiary of Abu Dhabi's state-owned oil company ADNOC. The XRG-led consortium, which includes Abu Dhabi Development Holding Company (ADQ) and U.S. investment firm Carlyle, has proposed a "final non-binding indicative offer" to acquire 100% of Santos stock for $5.76 per share in cash.
Sky News AU
a day ago
- Business
- Sky News AU
Aussie oil and gas giant Santos receives almost $30b takeover bid from consortium led by Abu Dhabi National Oil Company
Australia's second largest oil and gas producer has received an almost $30b takeover offer from a group led by the Abu Dhabi National Oil Company (ADNOC) as it looks to expand its global gas business. The $25b energy giant Santos told shareholders on Monday the group, which includes global investment firm Carlyle and is known as the XRG Consortium, received a proposal to acquire the Aussie company for US$5.76 (A$8.89) per share. The bid marks a 28 per cent jump on Santos' Friday closing share price of $6.69 and follows two previous offers at lower prices made in March. Santos said it has provided the XRG Consortium with access to confidential information on the company to determine an offer. The consortium said it wants Santos to enter into an exclusivity deed before further discussions and negotiations. Santos' board has recommended its shareholders vote in favour of the potential takeover. The deal will need the approval from a litany of bodies including the Australia Securities and Investments Commission, the Foreign Investment Review Board and the National Offshore Petroleum Titles Administrator. XRG Consortium has promised to keep Santos' headquarters in Adelaide, support Aussie employment and the communities where it operates and bolster gas investment in Australia. 'The XRG-led consortium aims to build on Santos' strong and longstanding legacy as a trusted and reliable energy producer, unlocking additional gas supply for Santos' customers, and strengthening domestic and international energy security,' the consortium said in a statement. 'The proposed transaction is aligned with XRG's strategy and ambition to build a leading integrated global gas and LNG business.' E&P analyst Adam Martin said he had considered Santos as a target for mergers and acquisitions (M&A) for more than two years now. 'Since that time, there has been numerous media articles about potential M&A and an official approach from Woodside regarding a merger between the two companies,' Mr Martin said. 'With the passage of time, our conviction level on Santos being acquired has been reducing as the business has effectively been open to offers but there has been limited newsflow. 'That said, now does feel like an opportune time to acquire Santos with risks building on energy prices and Santos entering a free cash inflection phase with the completion of several major growth projects.' ADNOC's investment marks a shift for the UAE company as it embarks on becoming a leader in the gas and LNG sectors. Santos' share price has jumped 12.7 per cent on Monday since news of the bid came to light.
New Straits Times
a day ago
- Business
- New Straits Times
Australia's Santos backs US$18.7bil takeover bid from ADNOC-led consortium
KUALA LUMPUR: Australian oil and gas producer Santos said on Monday it intended to support an US$18.7 billion takeover bid from an international consortium led by Abu Dhabi's National Oil Company (ADNOC), which is looking to grow a global gas business. ADNOC, through its investment arm XRG, with Abu Dhabi Development Holding Company (ADQ) and private equity firm Carlyle has offered US$5.76 (A$8.89) per Santos share, which was a 28 per cent premium to the Australian company's close on Friday. Santos shares rose 15 per cent in early trading Monday to A$7.86, well below the offer price for the transaction, which analysts said faced the risk of not being approved by regulators in both Australia and Papua New Guinea. The takeover bid emerged as oil prices reached multi-week highs as Israel and Iran traded air strikes, sparking concerns oil exports from the Middle East could be widely disrupted. With Santos in its fold, the XRG-led consortium would gain control of two Australian liquefied natural gas operations - Gladstone LNG on the east coast and Darwin LNG in the north, as well as stakes in PNG LNG and the undeveloped Papua LNG. Santos' interests in Papua New Guinea are considered its most prized assets. The company is also developing an oil project in Alaska, Pikka, due to start producing in mid-2026. The takeover offer follows two previous proposals made by the consortium in March at US$5.04 and US$5.42 per share that were not made public. "The Santos Board confirms that, subject to reaching agreement on acceptable terms of a binding scheme implementation agreement, it intends to unanimously recommend that Santos Shareholders vote in favour of the potential transaction, in the absence of a superior proposal," it added. The XRG consortium said it was negotiating to carry out due diligence with Santos on an exclusive basis before formalising the offer which would need at least 75 per cent support from Santos investors. "The proposed transaction is aligned with XRG's strategy and ambition to build a leading integrated global gas and LNG business," it said in a statement. Santos said the deal required approval from Australia's Foreign Investment Review Board (FIRB), Australian Securities and Investments Commission (ASIC), National Offshore Petroleum Titles Administrator, PNG Securities Commission, PNG Independent Consumer and Competition Commission and Committee on Foreign Investment in the United States (CIFIUS). XRG said it would maintain Santos's headquarters in South Australia, in a move to try and appease some regulators. MST Marquee senior energy analyst Saul Kavonic said FIRB approval "may be a major risk to the deal" as Santos controls significant critical energy infrastructure in Australia. Analysts at E&P Capital also flagged the risk of securing approvals from Australia's offshore operations regulator and Papua New Guinea. The deal follows talks last year between Santos and its bigger Australian rival Woodside to create a possible A$80 billion oil and gas giant, but Santos walked away saying it would look for other ways to bolster its value. Santos said in February its underlying annual profit fell nearly 16 per cent in 2024 and the company cut its dividend by 41 per cent. While Santos has been a takeover target over the past several years, Kavonic said that a competing bid "is very unlikely as only ADNOC may be willing to pay such a premium to realise their global LNG ambitions.
