Related Articles
Forward article link
Share PDF with colleagues

Scepter makes $5bn swoop on Santos

Australia’s Santos has rebuffed a A$7.14bn ($5.15bn) takeover bid from Middle Eastern private equity group Scepter

Santos, which needs to reduce its hefty debt by A$3.2bn to maintain its investment-grade credit rating, rejected the bid on the grounds that it was opportunistic and undervalues its assets. The current offer marks a 26% premium to Santos’ closing price of A$5.44 on 21 October and a 40% premium to the past 40 days. But analysts expect the deal, which values Santos at A$6.88/share, will be sweetened by 10% to around A$7.50/share, which would “be sufficient to get a deal done” and values the company on a long term oil price of close to $80/barrel, reported investment house Bernstein. The alternatives for Santos to pay down its debt are less attractive. Either a dilutive equity raise or selli

Also in this section
PdV’s cash concerns
15 August 2017
The Venezuelan company's plunging revenues show it is still struggling with lower prices and falling output
Venezuela living on the edge
2 August 2017
Venezuela's national oil company is under pressure from low prices, plummeting output and several self-inflicted wounds
Indian battleground
2 August 2017
Rosneft is expanding its reach in Asia, competing against Middle Eastern exporters