Australia’s energy company Santos has rejected a takeover approach by Scepter Partners.
Santos on Tuesday received a proposal from Scepter Partners, 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. Reuters says that the bid was A$7.1 billion ($5.1 billion).
“The Santos Board has met to consider the Proposal and decided to reject it. The Proposal is considered to be opportunistic in nature and does not reflect the fair underlying asset value of the company,” Santos said in a statement on Thursday.
Santos announced on 21 August 2015 that it would conduct a thorough strategic review of all options to restore and maximize shareholder value. The strategic review is ongoing, and will continue to consider all proposals which deliver appropriate value and certainty for shareholders, the company further added.
Scepter, headquartered in Bermuda, describes itself as a merchant bank and direct investment syndicate for sovereign wealth that is led by the former Blackstone Advisory Partners Asia team. It says that its operates a traditional merchant banking model off of Scepter’s core stakeholders that include senior members of Asian and Gulf based ruling families.
Scepter, founded by Brunei’s Prince Abdul Ali ‘Yil-Kabier, represents over $14 billion in discretionary assets and over $100 billion in net worth of its core stakeholders, the group says on its website.
Offshore Energy Today Staff