PERTH (miningweekly.com) – The merger between ASX-listed Santos and fellow listed Oil Search became effective on Friday, following shareholder and court approvals.
Oil Search shareholders will receive 0.6275 new Santos shares for each Oil Search share held on the record date of December 14. The company’s shares will cease trading on the ASX and PNGX at the end of business on Friday.
“The merger combines two industry leaders to create a regional champion of quality, size and scale with a unique and diversified portfolio of long-life, low-cost oil and gas assets,” Santos chairperson Keith Spence said.
“We look forward to integrating our businesses to create one high-performing team, with a vision of becoming a global leader in the energy transition,” Spence said.
Santos MD and CEO Kevin Gallagher said the two companies would be stronger together and would have increased scale and capacity to drive a disciplined, low-cost operating model and unrivalled growth opportunities over the next decade.
“The merger creates a company with strong and diversified cash flows, providing a platform to deliver shareholder returns and successfully navigate the transition to a lower-carbon future.
“Additionally, the merger builds on our industry-leading approach to environmental, social and governance through the combination of Santos’ leading carbon capture and storage capabilities with Oil Search’s social programmes in PNG and North America,” Gallagher said.
Following the implementation of the merger, three nonexecutive directors from Oil Search will join the Santos board, while Santos’ head office will remain in Adelaide.