Photo by: Bloombeg
PERTH (miningweekly.com) – Oil and gas major Santos has rejected a A$7.1-billion takeover offer from Scepter Partners on behalf of the managed funds of its core stakeholders.
Santos on Thursday revealed that the indicative and highly conditional nonbinding proposal had seen Scepter offer A$6.88 in cash for each Santos share.
The Santos board told shareholders the offer was opportunistic and did not reflect the fair underlying asset value, while the proposal was also subject to a number of conditions, some of which would adversely affect Santos’s continued evaluation of other alternatives in its current strategic review process.
Santos in September announced a review of all options to restore and maximise shareholder value. The options included possible asset divestment as part of its ongoing portfolio management, provided fair long-term value could be realised.
Santos shares were trading at a high of A$6.56 on Thursday.