$19 billion takeover uncover takes step ahead: Santos and ADNOC-led agency embark on talks

With a six-week unfamiliar due diligence duration in enact, Australia’s energy player Santos has kicked off negotiations relating to an $18.7 billion non-binding indicative provide for all its shares with a consortium led by XRG, a subsidiary of Abu Dhabi National Oil Company (ADNOC), comprising Abu Dhabi Pattern Maintaining Company (ADQ) and global funding agency Carlyle. 

Following XRG’s proposal to aquire all usual shares issued by Santos for a cash provide worth of $5.761 per piece via a intention of association, the Australian player has entered into a direction of and exclusivity deed with the ADNOC-led consortium.

The approach deed is claimed to govern the premise upon which XRG will possess the chance to undertake due diligence, enabling the duo to barter in staunch faith, in parallel with the due diligence, a binding intention implementation deed (SID) to implement the aptitude takeover.

As a result, the ADNOC-led consortium has been granted unfamiliar due diligence get right to use for six weeks, with exclusivity provisions, including frail ‘no shop,’ ‘no talk,’ ‘no due diligence’ and ‘notification’ responsibilities that apply at some level of the exclusivity duration.

Santos explains that a fiduciary exception applies, enabling its board to take care of potentially superior proposals from competing acquirers four weeks from June 27. As well, XRG has agreed to a confidentiality settlement with the Australian agency.

Whereas explaining that its shareholders discontinuance not have to take any action referring to this, Santos highlights that there isn’t a certainty XRG will enter into a binding SID or that a doable transaction will proceed.  

This takeover uncover is aligned with XRG’s low-carbon agenda and five-365 days industry notion to construct an constructed-in gasoline and liquefied pure gasoline (LNG) industry with 20–25 million tons per annum (mtpa) capability by 2035.

The exclusivity deed comes after the launch of commissioning actions for a floating manufacturing, storage, and offloading (FPSO) unit, operated by Norway’s BW Offshore, which lately arrived at Santos’ Barossa enviornment offshore Australia.