Santos to engage with Harbour post its $10.4 billion acquisition bid
Date: 2018-04-03   Author: Dhananjay Punekar  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


Dhananjay Punekar

Dhananjay Punekar

Dhananjay currently works as a content writer at AlgosOnline. A post graduate in mathematics as well as business administration, he worked as a process executive in Infosys BPO Limited before switching his professional genre. Following his childhood passion, he opted fo...

Read More

More from Dhananjay


Post Recommendents

Asphalt Mixing Plants Market Trend & Growth Forecast 2018-2024 By Application - Road Construction
Author: Rahul Varpe

Asia Pacific Asphalt Mixing Plants Market generated revenue over USD 2.5 billion and is foreseen to hold a major share of the market pie over the coming years. Owing to the robust growth in the countries of Asia Pacifi...


Painting Tools Market Trend & Growth Forecast 2018-2024 By Product - Brushes, Rollers, Scrapers, Knives, Trays, Spray Gun, Masking Tapes
Author: Rahul Varpe

Painting tools market share from construction applications is predicted to surpass a revenue collection of USD 10 billion by 2024, owing to the increasing industrialization and escalating housing need of the rapidly gr...


Building Thermal Insulation Market Trend & Growth Forecast 2018-2024 By Material - Wool Insulation, Plastic Foams
Author: Rahul Varpe

Building Thermal Insulation Market size from roof applications will grow at a rate of nearly 4% over the period of 2017-2024. The growth can be credited to the high demand for flat roofs in the commercial buildings. Fl...