XRG consortium makes $18.72 billion bid for Australia's Santos
16 June 2025 09:22
A. SREENIVASA REDDY (ABU DHABI)
A consortium led by XRG, the international investment arm of the Abu Dhabi National Oil Company (ADNOC), has made a 'non-binding, indicative' proposal to acquire 100% of Santos, a leading Australian oil and gas producer.In a statement issued on Monday, Adelaide-based Santos said it had received the offer on June 13, 2025. The XRG consortium — comprising XRG, Abu Dhabi Development Holding Company (ADQ), and US-based Carlyle — has proposed a cash offer of US$5.76 (A$8.89) per share, valuing the company at approximately US$18.72 billion.The offer represents a 28% premium over Santos' last closing share price of A$6.96 on June 13, and premiums of 30%, 34%, 44%, and 39% over the one-week, one-month, three-month, and six-month volume-weighted average prices (VWAP), respectively.The latest proposal follows two earlier confidential and non-binding offers from the consortium — one on March 21, 2025 at US$5.04 (A$8.00) and another on March 28, 2025 at US$5.42 (A$8.60).The Santos Board has indicated its support for the deal, stating, 'It intends to unanimously recommend that Santos shareholders vote in favour of the transaction, in the absence of a superior proposal and subject to an independent expert concluding that the transaction is fair and reasonable.'However, the proposal remains conditional. It is subject to confirmatory due diligence by the consortium and the negotiation and execution of a binding Scheme Implementation Agreement (SIA) with Santos. Regulatory approvals would also be required from the authorities.Goldman Sachs and JB North & Co are acting as financial advisers to Santos, with Rothschild & Co serving as the independent board adviser. Herbert Smith Freehills Kramer is acting as the company's legal adviser.XRG was officially launched in November 2024 as ADNOC's global investment platform, with an initial enterprise value of over $80 billion. Its board recently approved a five-year business plan (2025–2030), aiming to transform XRG into one of the world's top five integrated gas and LNG players, with a target of 20–25 million tonnes per annum of LNG capacity by 2035.XRG is actively expanding its footprint through strategic acquisitions and partnerships, including recent engagements in the United States (Rio Grande LNG), Mozambique, Egypt, Azerbaijan, and Turkmenistan.In a statement, XRG said the consortium aims to build on Santos' strong and longstanding legacy as a trusted and reliable energy producer, unlocking additional gas supply for Santos' customers and 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,' the statement said.The XRG consortium has engaged J.P. Morgan as its financial adviser and Linklaters and Allens as legal advisers.The XRG-led consortium intends to maintain Santos' headquarters in Adelaide, as well as its brand and operational footprint in Australia and key international operating hubs. 'We will work closely with the existing management team to accelerate growth and support local employment and the communities where Santos operates,' XRG said. The consortium also aims to invest in Santos' growth and further development of its gas and LNG-focused business, which will provide reliable and affordable energy and low-carbon solutions to customers in Australia, the Asia Pacific, and beyond.
Carlyle, a Washington-based investment firm with an office at Abu Dhabi Global Market (ADGM), is a major player in the private equity space. ADQ is a sovereign wealth fund of the Abu Dhabi government.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Dubai Eye
2 hours ago
- Dubai Eye
Trump's sweeping tax-cut, spending bill clears first US Senate hurdle
The Republican-controlled US Senate narrowly advanced President Donald Trump's, sweeping tax-cut and spending bill on Saturday, during a marathon weekend session marked by political drama, division and lengthy delays as Democrats sought to slow the legislation's path to passage. Lawmakers voted 51-49 to open debate on the 940-page megabill, with two of Trump's fellow Republicans joining Democrats to oppose the legislation that would fund the president's top immigration, border, tax-cut and military priorities. Trump on social media hailed the "great victory" for his "great, big, beautiful bill." After hours of delay, during which Republican leaders and Vice President JD Vance worked behind closed doors to persuade last-minute holdouts to support the measure, Democrats demanded that the megabill first be read aloud in the chamber - a task that could delay the start of the debate until Sunday afternoon. Democrats say the bill's tax cuts would disproportionately benefit the wealthy at the expense of social programs for lower-income Americans. "Senate Republicans are scrambling to pass a radical bill, released to the public in the dead of night, praying the American people don't realise what's in it," Senate Democratic leader Chuck Schumer said on the Senate floor. "Democrats are going to force this chamber to read it from start to finish," he said. Once the bill has been read, lawmakers will begin up to 20 hours of debate on the legislation. That will be followed by a marathon amendment session, known as a "vote-a-rama," before the Senate votes on passage. Lawmakers said they hoped to complete work on the bill on Monday. Republican Senators Thom Tillis and Rand Paul voted against opening debate, a move that seemed for a time to be in danger of failing. Trump attacked Tillis, who opposed the bill's cuts to the Medicaid healthcare program for lower-income Americans, which he said would be devastating for his native North Carolina. Tillis is up for reelection next year. "Numerous people have come forward wanting to run in the Primary against 'Senator Thom' Tillis. I will be meeting with them over the coming weeks," the president posted. Paul opposed the legislation because it would raise the federal borrowing limit on the $36.2 trillion US debt by an additional $5 trillion. "Did Rand Paul Vote 'NO' again tonight? What's wrong with this guy???" Trump said on social media. IN LIMBO Saturday's vote was in limbo for hours as Vance, Senate Majority Leader John Thune and other top Republicans sought to persuade last-minute holdouts to support the legislation. It was not clear what deals if any were struck to win over their support. Hardline Republican Senators Rick Scott, Mike Lee and Cynthia Lummis, who want deeper cuts in federal spending, voted to support the bill in the end. Another hardliner, Senator Ron Johnson, initially voted no but flipped his vote and backed the legislation. Trump was monitoring the vote from the Oval Office late into the night, a senior White House official said. The megabill would extend the 2017 tax cuts that were Trump's main legislative achievement during his first term as president, cut other taxes and boost spending on the military and border security. The nonpartisan Joint Tax Committee released an analysis projecting that the Senate bill's tax provisions would reduce government revenue by $4.5 trillion over the next decade, increasing the $36.2-trillion US government debt. The White House said this month the legislation would reduce the annual deficit by $1.4 trillion. The world's richest person, Elon Musk, also took a swipe at the bill, which would end tax breaks for the electric vehicles that his automaker Tesla manufactures. Calling the bill "utterly insane and destructive," he risked reigniting a feud with Trump that raged earlier this month, before Musk backed down from his rhetoric. "The latest Senate draft bill will destroy millions of jobs in America and cause immense strategic harm to our country!" Musk wrote in a post on his social media platform X. MEDICAID CHANGES Republicans from states with large rural populations have opposed a reduction in state tax revenue for Medicaid providers, including rural hospitals. The newly released legislation would delay that reduction and would include $25 billion to support rural Medicaid providers from 2028 to 2032. The legislation would raise the cap on federal deductions for state and local taxes to $40,000 with an annual 1% inflation adjustment through 2029, after which it would fall back to the current $10,000. The bill would also phase the cap down for those earning more than $500,000 a year. That is a major concern of House Republicans from coastal states, including New York, New Jersey and California, who play an important role in keeping the party's narrow House majority. Republicans are using a legislative maneuver to bypass the Senate's 60-vote threshold to advance most legislation in the 100-member chamber. Democrats will focus their firepower with amendments aimed at reversing Republican spending cuts to programs that provide government-backed healthcare to the elderly, poor and disabled, as well as food aid to low-income families. The bill also would raise the Treasury Department's debt ceiling by trillions of dollars to stave off a potentially disastrous default on the nation's debt in the coming months. If the Senate passes the bill, it will then return to the House of Representatives for final passage before Trump can sign it into law. The House passed its version of the bill last month.
Al Etihad
2 hours ago
- Al Etihad
G42 makes it to TIME's 100 most influential companies' list
29 June 2025 12:15 A. SREENIVASA REDDY (ABU DHABI)G42, the UAE-based artificial intelligence leader, has made it to the TIME100 Most Influential Companies list. Featured under the 'Innovators' category and described as a 'Rising AI Power', G42 has been acknowledged for its extraordinary contributions to global AI infrastructure and strategy in the fifth edition of the annual TIME100 list, curated annually by TIME editors and correspondents, highlights companies across sectors that are shaping the future through innovation, ambition, and impact. G42 joins a select group that includes global giants such as OpenAI, Meta, Amazon, Huawei, ByteDance, Palantir, BlackRock, SpaceX, Nintendo, and Berkshire the MENA region, only two companies made it to the list this year — G42 and Saudi Arabia's Diriyah Company, which is leading the transformation of the historic Diriyah district into a cultural and heritage hub under Vision 2030.G42 was especially spotlighted for spearheading the world's largest AI infrastructure project outside the United States — a 10-square-mile AI campus in Abu Dhabi, launched in May 2025 in the presence of UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan and US President Donald Trump. Developed in collaboration with leading US companies such as OpenAI, Microsoft, Oracle, Cisco, SoftBank, and Nvidia, the AI campus will include supercomputers, data centres with 5-gigawatt capacity, a science park, and facilities powered by nuclear, solar, and gas sources.'This campus is just one G42 initiative supporting the UAE's 2031 AI superpower goal,' TIME noted. The project forms part of the broader US-UAE AI Acceleration Partnership, which aims to deepen bilateral cooperation on advanced technologies. Under the agreement, American companies will operate the data centres and extend US-managed cloud services, leveraging the UAE's strategic location to serve nearly half the world's to TIME, Faheem Ahamed, Group Chief Marketing and Communications Officer at G42, said the company sees other AI firms 'not as competition, but [as] potential collaborators.' He added that G42's selection reflects its growing global influence, with giga-scale projects underway in Europe, Kenya, and the US. 'It also reflects a collaborative model that positions the company at the centre of global AI infrastructure development.'Indeed, G42's ambitions extend far beyond the Gulf. Through its subsidiary Core42, the company recently signed a strategic agreement with iGenius to launch Europe's largest AI compute infrastructure — a sovereign AI supercomputer powered by thousands of Nvidia Blackwell to TIME, winning over Washington was pivotal to the company's global ambitions. In May, the US administration relaxed restrictions on semiconductor exports to the UAE, enabling US companies to sell cutting-edge chips for G42's AI campuses. 'For US firms, closer ties offer access to substantial Emirati capital and energy, and closer proximity to half the globe's population,' the TIME report said. The UAE, a forerunner in artificial intelligence policy, has made significant strides in recent years. It was the first country to appoint a Minister of AI in 2017 and to launch a nationwide AI strategy. Institutions such as the Mohamed bin Zayed University of Artificial Intelligence underscore the nation's commitment to leading AI innovation. Source: Aletihad - Abu Dhabi
Arabian Post
4 hours ago
- Arabian Post
UAE Fund Backs Trump-Linked Crypto with $100m Governance Stake
Arabian Post Staff -Dubai A UAE-based investment vehicle, Aqua 1 Foundation, has acquired $100 million in governance tokens from World Liberty Financial, the cryptocurrency venture affiliated with the Trump family, making it the most prominent publicly disclosed investor to date. The move, confirmed by both parties, signals a strategic push to accelerate the creation of a blockchain-based financial ecosystem built on stablecoins and tokenised real-world assets. Aqua 1 described the allocation of governance tokens—known as WLFI—as an opportunity to contribute to decisions on the platform's development. Although WLFI is currently non-transferable, World Liberty has confirmed it is 'working behind the scenes' to enable trading functionality. At the Permissionless conference in Brooklyn, WLF co‑founder Zak Folkman stated that WLFI could soon be tradable, with the stablecoin set for an independent audit 'within days'. ADVERTISEMENT Dave Lee, founding partner at Aqua 1, emphasised the synergy expected from the partnership, citing plans to jointly identify and foster high‑potential blockchain initiatives. The intention is to integrate WLF's USD1 stablecoin infrastructure into global commercial payments and treasury systems. The move marks Aqua 1 as a key bridge between traditional finance and decentralised finance, aligning with its ambition to extend influence into South America, Europe, Asia and Middle Eastern markets. Despite its substantial investment, Aqua 1 has maintained a low profile. Reports indicate its web presence is minimal—with just a handful of social media posts and evidence of a website only registered on 28 May. WLF, launched in late 2024 by Donald Trump, three of his sons and associate Steve Witkoff, has raised well over half a billion dollars through token sales. The Trump family controls a significant stake—around 60% ownership and 75% of net token sales revenue—raising concerns over conflicts of interest. Democratic lawmakers and ethics watchdogs have repeatedly voiced apprehension that these financial interests may influence policy, amid reports that WLF proceeds reached hundreds of millions of dollars. WLF's stablecoin, USD1, is 100% backed and supported by U.S. dollar reserves, including Treasuries, and has already drawn sizeable institutional backing. In May, an Abu Dhabi firm used USD1 in a $2 billion transaction with Binance, while WLF prepares to publish an attestation of its stablecoin reserves as part of forthcoming audit disclosures. The institutionalisation of WLFI governance aligns with the platform's roadmap, which includes plans to launch a consumer‑friendly mobile app to streamline access to its digital ecosystem. The expected transition to transferable governance tokens is likely a precondition to broader distribution and potential listings on third‑party exchanges. Regulatory scrutiny remains a key challenge. Critics argue that WLF's entanglement of private financial interests with public office contradicts norms protecting against foreign influence. At least one senator has raised concerns after the Abu Dhabi stablecoin transaction. Additional worries stem from the Trump administration's shift toward crypto deregulation, a change that coincides with WLF's rise, prompting concerns from ethics groups about policy bias favoring the platform. That overlap of influence has fuelled broader debates in Congress. Legislators have begun proposing amendments such as the GENIUS Act, which would regulate stablecoins more robustly, and restrictions on digital asset investments by sitting presidents. Observers note that WLFI's new status and Aqua 1's involvement could sharpen the need for regulatory clarity and transparency around token governance. Meanwhile, WLF's expansion plans are proceeding apace. The platform is reportedly developing a Middle East‑based Aqua Fund to support digital economy projects leveraging blockchain and artificial intelligence. The collaboration is expected to produce tokenisation platforms such as BlockRock, targeting institutional asset-digitisation markets. Aqua 1's governance stake marks a turning point. By becoming the lead institutional backer, the foundation now holds significant influence over decisions shaping WLF's evolution. With token transferability and app launches on the horizon, WLFI stands poised for a new phase of adoption—though progress will likely be watched closely by regulators and investors alike.
