Santos to engage with Harbour post its $10.4 billion acquisition bid
Date: 2018-04-03   Author: Saipriya Iyer  Category: #market

Santos to engage with Harbour post its $10.4 billion acquisition bid

Santos Limited, an Australian gas producer, has reportedly declared that it will collaborate with Harbour Energy, a U.S. based energy investment firm, after a USD 10.4 billion acquisition proposal put forward by the latter. According to authentic sources, this is the fourth unsought bid by Harbour to acquire Santos since August 2017. The current proposal, which evaluates Santos at a 28% premium to its last closing share price, is forecast to provide Harbour with the ownership of LNG across the APAC as well as access to low cost oil production.

For the record, Harbour’s offer is the largest bid made by any foreign firm for any listed Australian organization. Indeed, the last biggest bid of this magnitude was that of Unibail-Rodamco SE, a European firm that made a USD 16 billion purchase offer to acquire Westfield Corporation, a shopping mall based in Australia. With the announcement, a commendable surge was apparently witnessed in the share prices of Santos.

It is being speculated that Australia’s long-lasting power crises can pose a huge challenge towards the successful closure of the deal. It is quite likely that there could be hiccups in the approval of the deal as the regulatory authorities in the country fear that the firms under the foreign ownership often neglect the energy needs of the local population.

Andy Forster, a key official working with Argo Investments, a firm holding majority of shares in Santos, has stated that the firm might consider price as one of the key factors before taking any decision over Harbour Energy’s acquisition proposal.

Harbour Energy’s offer values Santos’s share price at A$6.50 per share as compared to its last closing price at A$5.07. It is speculated that Harbour is planning to fund the acquisition deal through the equity & debt. In fact, it has been reported that Morgan Stanley & J.P. Morgan will be underwriting debts worth USD 7.75 billion.



About Author


Saipriya Iyer

Saipriya Iyer

Saipriya Iyer currently works as a content developer for AlgosOnline. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her belt, she has dabbled with website...

Read More

More from Saipriya


Post Recommendents

Worldwide Biotechnology Reagents Market Forecast 2020-2025 Growth Drivers, Regional Outlook
Author: Ashwin Naphade

Market Study Report, LLC, has added an exhaustive research study of the ' Biotechnology Reagents market', detailing every single market driver and intricately analyzing the business vertical. This ' Biotechnology Reagents market' s...


2025 Projections: Four Wheel Drive Vehicles Market Report by Type, Application and Regional Outlook
Author: Ashwin Naphade

The ' Four Wheel Drive Vehicles market' report added recently by Market Study Report, LLC, evaluates the industry in terms of market size, market share, revenue estimation, and geographical outlook. The study also delivers a precise summar...


Worldwide Potassium Citrate Market Study for 2020 to 2025 providing information on Key Players, Growth Drivers and Industry challenges
Author: Ashwin Naphade

The ' Potassium Citrate market' report Added by Market Study Report, LLC, enumerates information about the industry in terms of market share, market size, revenue forecasts, and regional outlook. The report further illustrates competitive ...