Santos’s entitlement offer falls short, raises A$1.17bn
PERTH (miningweekly.com) – The share price of oil and gas major Santos fell by more than 28% on Thursday after the company failed to meet its A$2.5-billion institutional entitlement offer.
Santos closed the 1-for-1.7 accelerated pro rata renounceable offer with an 86% uptake, raising around A$1.17-billion.
The company told shareholders the institutional offer shortfall bookbuild had attracted strong demand from both existing shareholders and other institutional investors, clearing at A$4.60, which represented a premium of 75c to the offer price of A$3.85 a share.
Eligible institutional shareholders who elected not to take part in the entitlements and ineligible institutional shareholders would receive 75c a share for each entitlement sold in the shortfall bookbuild.
Santos this week announced plans to reduce its debt by some A$3.5-billion, including the A$520-million sale of its interest in the Kipper gasfield, offshore Victoria.
Besides the entitlement offer, Santos also announced a A$500-million private placement.
“The successful uptake of the institutional offer is a clear sign of confidence in the package of capital initiatives Santos announced this week to strengthen our balance sheet and restore long-term value for shareholders,” executive chairperson Peter Coates said on Thursday.
Meanwhile, the retail component of the entitlement offer, which was expected to raise A$1.35-billion, would open on November 17 and close on November 30.
Santos shares were trading at a low of A$4.24 a share on Thursday, down from a high of A$4.55 a share.
Comments
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation