PERTH (miningweekly.com) – Korean major POSCO International Corporation has again improved its takeover offer for ASX-listed Senex Energy, and is now offering shareholders A$4.60 a share for their interest in the company.

Senex in October flagged a change of control discussion with POSCO after that company in early September submitted a revised non-binding and indicative proposal to acquire 100% of Senex for a cash offer price of A$4.40 a share, following the submission of two prior non-binding proposals in July of A$4.00 a share, and in August of A$4.20 a share.

Senex told shareholders that the board intends to unanimously recommend that shareholders vote in favour of the proposed transaction, subject to the companies negotiating an acceptable scheme implementation agreement, and an independent expert concluding it was in the best interest of shareholders, and no superior proposal emerging.

Senex has extended POSCO’s exclusivity period until November 26, to provide the companies a chance to enter into a binding scheme implementation agreement, and for POSCO to obtain internal approvals.

Meanwhile, Senex on Monday also announced plans to expand production of its Atlas operation through the A$80-million acquisition of two adjacent undeveloped gasfields from Australia Pacific Liquefied Natural Gas.

MD and CEO Ian Davies said the acquisition increased the quality and scale of Senex’s natural gas supply portfolio, providing portfolio flexibility to further support Senex’s customers and increase supply to the east coast gas market.

“The acquisition of these undeveloped gasfields adjacent to Atlas continues Senex’s growth trajectory in the Surat basin and reinforces the company’s low-cost, hub-and-spoke infrastructure operating model.

“Atlas is a high-quality development, providing reliable, affordable and sustainable supplies of natural gas to Australian manufacturers, supporting the economy and jobs in local communities,” Davies said.

Production at Atlas will be expanded to 30 PJ/y in 2024, from its current expansion plans of 18 PJ/y, making up half of Senex’s 2025 production target of 60 PJ/y.

The initial acquisition cost would entail A$50-million, with a further A$30-million payable on the receipt of Commonwealth environmental approvals. Senex said on Monday that the transaction would be funded from an acquisition bridge facility and existing cash and debt facilities.

The two gasfields include a 77 km² development-ready Northern Area, comparable in reservoir quality to the adjacent Atlas field, and a 77 km² Southern Area, which requires further appraisal. The Northern Area has an estiamted ultimate recoverable volume of 184 PJ, with 600 PJ estimated gas-in-place in the Southern Area.