Santos Rejects $5.1bn Takeover Offer

Santos Limited on Thursday said it has rejected a A$7.1 billion ($5.1 billion) takeover proposal from Scepter Partners.

The company on Tuesday received “an indicative, highly conditional and non-binding proposal from Scepter Partners (Scepter), on behalf of the managed funds of its core stakeholders, to acquire all of Santos for a cash consideration of A$6.88 per share.”

Santos said it considers the proposal to be opportunistic in nature which does not reflect the fair underlying asset value of the company, adding that the proposal was also subject to numerous conditions, some of which would be “adverse to Santos’ continued evaluation of other alternatives in its current strategic review process.”

Scepter is a direct investment business whose stakeholders include a standing syndicate of ruling families, ultra-high-net-worth industrialists and sovereign wealth funds.

Santos announced last month that it would conduct a thorough strategic review of all options to restore and maximise shareholder value. 

“The strategic review is ongoing, and will continue to consider all proposals which deliver appropriate value and certainty for shareholders,” the company stated.