Australia's second-largest gas producer Santos announced Monday a non-binding and indicative takeover proposal from a consortium led by Abu Dhabi's National Oil Company (ADNOC).
ADNOC's investment arm XRG, with Abu Dhabi Development Holding Company (ADQ) and private equity firm Carlyle, proposed to offer $5.76 (around $8.89 AU dollars) per Santos share.
The proposal is subject to several conditions, including confirmatory due diligence, negotiation of a binding scheme implementation agreement, and regulatory approvals from authorities in Australia, Papua New Guinea, and the United States.
Santos board said if a binding offer is made, "it intends to unanimously recommend that Santos shareholders vote in favor of the potential transaction, in the absence of a superior proposal."
XRG consortium said it is in talks to conduct exclusive due diligence with Santos ahead of formalizing its bid, which would require the backing of at least 75% of Santos shareholders.
($1 = 1.53 AU dollars)
By Humeyra Ayaz
Anadolu Agency
energy@aa.com.tr