Today's Edition
A. SREENIVASA REDDY (ABU DHABI)
The XRG-led consortium, which initiated a bid to acquire 100% of Santos, a leading Australian oil and gas producer, has been granted an additional two weeks to complete its due diligence, Santos said in a statement.
“The XRG Consortium has now substantially completed due diligence in relation to the bid,” the statement added.
“The XRG Consortium has confirmed it has not discovered anything to date that would cause it to withdraw its proposal and has confirmed its commitment to working constructively with Santos to complete the due diligence promptly and agree on a binding transaction,” Santos said.
The company has consented to an extension until August 22 to enable the consortium to finalise due diligence.
The XRG consortium consists of XRG; a subsidiary of the Abu Dhabi National Oil Company (ADNOC); Abu Dhabi Development Holding Company, a sovereign wealth fund of Abu Dhabi; and US-based investment firm Carlyle.
On June 13, the consortium submitted a non-binding, indicative proposal to acquire all outstanding Santos shares at $5.76 per share, valuing the company at approximately $18.72 billion. The offer represented a 28% premium to Santos’ closing share price at the time.
During the six-week due diligence period, the consortium was permitted to review confidential financial, operational, legal and strategic information about Santos to assess the proposed acquisition. This period has now been extended by two weeks.
In its proposal statement, the consortium said it aims to build on Santos’ legacy as a trusted and reliable energy producer, while unlocking additional gas supply for customers and enhancing 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.
JP Morgan is acting as financial adviser to the XRG consortium, with Linklaters and Allens as legal advisers. For Santos, Goldman Sachs and JB North & Co are acting as financial advisers, Rothschild & Co is serving as independent board adviser, and Herbert Smith Freehills Kramer is legal counsel.
