Image courtesy of SantosAustralian LNG player Santos received a new, revised takeover bid by the US-based Harbour Energy upping its offer to a total of US$10.8 billion.
The EIG Global Energy Partners-backed investment firm upped its bid for Santos shares to US$5.21 per share.
However, the proposal is conditional on Santos undertaking hedging of its oil-linked production in 2018, of around 30 percent and changes to hedging in 2019, Santos said in a statement.
In addition, Harbour has indicated the offer price would be increased to a US dollar amount equivalent to A$7.00 per share if Santos agrees to hedge 30 percent of oil-linked production in 2020.
The revised offer came soon after the binding, conditional bids of US$4.98 per share Harbour put in on May 17 and another one on May 19, at US$5.12 per share.
The revised Harbour proposal is subject to conditions, including completion of final confirmatory due diligence and entry into a scheme implementation deed between Santos and Harbour, which requires the transaction to be recommended by the independent directors of the Santos board and the shareholder approval.
The independent directors of Santos will consider the Revised Harbour Proposal and will update shareholders accordingly, Santos said in its statement, adding that there is no certainty the bumped bid would result in an offer that the company’s shareholders would consider.
So far, Santos has advised its shareholders not to take any action in relation to the proposal.