Santos, Oil Search extend due diligence period
Potential merger partners Santos and Oil Search have agreed to extend the due diligence period for a further one week to September 13, they said on September 6.
“Subject to each party completing due diligence on the other to its satisfaction, and the entry into of a merger implementation agreement, the Oil Search board intends to unanimously recommend shareholders vote in favour of the revised proposal, in the absence of a superior proposal and subject to the conclusion of an independent expert that the revised proposal is in the best interests of Oil Search shareholders,” the Papua New Guinea-focused company said.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
Oil Search added that there is no certainty that the revised proposal will result in a transaction. According to the merger deal announced last month, Oil Search shareholders will receive 0.6275 new Santos shares for each Oil Search share held. Following approval of the deal, Oil Search shareholders will own approximately 38.5% of the merged group and Santos shareholders will own approximately 61.5%.
Santos last month said the combination would create greater alignment in Papua New Guinea supporting the development of key projects including Papua LNG, deliver new jobs, and help support the local economy.