ENN cuts stake in Santos

China’s ENN Group has reduced its stake in the Australian energy major Santos.

The company informed Santos on Monday, March 8, that it has sold approximately 107.1 million shares, representing 5.14 per cent interest in Santos.

The shares were priced at $7.33 per share, totaling at approximately $785 million.

The sale process was oversubscribed ENN told Santos in its notice, adding that it received strong support from existing and new institutional shareholders.

The Chinese company further noted it remains supportive of Santos’ strategy and future direction. The company also remains Santos’ largest individual shareholder with a 9.97 per cent stake.

As a result of the reduced shareholding, the 2017 strategic relationship agreement with ENN, regarding board representation and other matters is no longer effective.

Accordingly, the ENN-nominated director Eugene Shi will resign from the Santos board following completion of the sale, Santos said.