September 16, 2021 | Energy | Australia | Ended
After rejecting an initial proposal in June 2021, Oil Search has agreed to a sweetened offer from Australian rival Santos, to create one of the top 20 oil and gas companies in the world. On 2-Aug-21, the companies reached an agreement on a merger ratio whereby OSH shareholders will receive 0.6275 Santos shares for each OSH share to own 38.5% of the combined company; Santos shareholders will own the remaining 61.5%. The companies subsequently signed confidentiality agreements and undertook extended due diligence, and, on 10-Sep-21, entered into a merger implementation deed based on the previously announced exchange ratio and other specific terms. The offer at announcement equates to AUD 4.29 per OSH share, a 16.8% premium to the target’s undisturbed price on 19-Jul-21, the day prior to the public disclosure of the first proposal. OSH’s board recommends the deal, subject to an opinion from an independent expert. OSH is incorporated in Papua New Guinea (“PNG”) and, as such, clearances are needed from ...
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