Santos endorses multibillion-dollar Adnoc consortium acquisition attempt
In a significant development, Australian gas producer Santos has announced its recommendation for an $18.7bn takeover led by a global consortium. The consortium, spearheaded by XRG, a subsidiary of Abu Dhabi National Oil Company (ADNOC), Abu Dhabi Holding Company, and global investment firm Carlyle, aims to expand operations and resources in the gas sector.
The proposed takeover will grant XRG access to two Australian liquefied natural gas operations: Gladstone and Darwin. This strategic move reflects XRG's growing global aspirations beyond their current scope.
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The consortium, which also includes the Abu Dhabi National Oil Company (ADNOC) and the Abu Dhabi Holding Company, has appointed Goldman Sachs and JB North & Co as financial advisers, while Rothschild & Co acts as independent board adviser to Santos. Legal advice for the transaction is being provided by Herbert Smith Freehills Kramer.
Under the proposed takeover, Santos shareholders will receive a cash offer price of $5.761 for each share. The deal will also provide XRG with interests in Papua New Guinea, specifically the Angore project in PNG's Hela Province, capable of delivering up to 350 million standard cubic feet per day. This project is a significant part of the takeover deal.
The Angore project is not the only addition to XRG's portfolio. The takeover will also grant XRG access to Santos' operations in Papua New Guinea, further expanding their global aspirations.
Subscribing to gasworld grants access to hundreds of features, going beyond the surface level to provide readers with exclusive content and insights. The takeover of Santos by the consortium is a testament to the growing synergy between global players in the gas industry.
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