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    Australia's Senex Energy gets takeover offer from Posco


The takeover offer from the Korean company values the Australian gas explorer at A$815mn ($604mn).

by: Shardul Sharma

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Australia's Senex Energy gets takeover offer from Posco

Australian gas explorer Senex Energy on October 18 said it had received a takeover offer from South Korea’s Posco International.

The Korean firm in September submitted a revised non-binding proposal to acquire 100% of Senex for a cash offer price of A$4.40 ($3.26)/share. The offer values the company at A$815mn. This revised offer followed the submission of two prior non-binding proposals in July and August, Senex said.

The offer represents a 15% premium over Senex's closing share price last Friday and nearly 38% over its close on September 1. 

The Australian company said it expects a further revised proposal at a price higher than A$4.40/share. Senex has agreed to extend Posco's exclusivity period to November 5, in order to provide the Korean firm with additional time to assess a further revised proposal, it added.

“The Senex board believes it is in the best interests of its shareholders to continue to engage with Posco International and will assess any proposal received on its merits,” the Sydney-listed company said.

Posco International specialises in oil and gas exploration and production, LNG, agri-resources and steel trading; it owns a network of 105 overseas branches and subsidiaries in 45 countries, including an office in Sydney.