Abu Dhabi state oil firm makes USD 18.7 billion bid for Australia's Santos
SYDNEY: Abu Dhabi's state-owned oil company is leading an USD 18.7 billion takeover bid for Australian energy group Santos as it seeks to build a global natural gas giant, the two firms said Monday.
Santos' board said it planned to unanimously recommend the Abu Dhabi National Oil Company's offer to shareholders if it can agree on the takeover terms.
Adelaide-based Santos has operations in Australia, Papua New Guinea, East Timor and the United States, and is a major supplier of liquefied natural gas in Australia and Asia.
The Abu Dhabi National Oil Company offered USD 5.76 a share in a bid for all of Santos' outstanding stock, valuing the entire company at USD 18.7 billion.
The price per share is 28 percent higher than Santos' closing level on Friday.
It was the "final, non-binding" offer from the Middle East oil company, which had offered two, lower confidential bids in March, Santos said.
Santos' stock was more than 11 percent higher in afternoon trade on the Australian Securities Exchange.
The Abu Dhabi-based, state-owned energy firm made its bid via a consortium led by its own subsidiary, XRG.
Other members of the consortium include Abu Dhabi Development Holding Company and global investment firm Carlyle.
In a statement, XRG said it aimed to build on Santos' legacy as a trusted energy producer, "strengthening domestic and international energy security."
"The proposed transaction is aligned with XRG's strategy and ambition to build a leading integrated global gas and LNG business," it said.
Santos' board said it intended to "unanimously recommend" that shareholders vote in favour of the deal if it can agree on terms and there is no better offer.
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