Photo by: Bloomberg
PERTH (miningweekly.com) – US-based suitor Harbor Energy has increased its cash bid for oil and gas major Santos, from $4.98 a share previously offered to $5.21 a share.
The revised proposal, announced on Monday, is conditional on Santos undertaking additional hedging of oil-linked production in 2018 of about 30%, as well as changes to its 2019 hedging.
In addition, Harbour has indicated that the offer price will be increased to the US equivalent of A$7 a share if Santos agrees to hedge 30% of oil-linked production in 2020.
The revised cash component follows only days after Harbor tweaked its proposed transaction structure, including a US dollar cash offer with no fixed Australian dollar component for shareholders other than ENN Ecological Holdings and Hony Capital.
The revised offer is subject to a number of conditions, including the completion of a final due diligence, and the two parties entering into a scheme implementation agreement, which will require Foreign Investment Review Board and shareholder approvals.
Santos said that its independent directors would consider the revised offer.
The initial offer was made on April 2.