Scepter Partners is proposing to to acquire 100 per cent of Santos Limited, an independent oil and gas company in Australia, at AUD6.88 (USD4.97) per share in cash.
If implemented, the offer, which values Santos at AUD7.1 billion (USD5.1bn), would provide shareholders with a 26 per cent premium over the closing price of Santos shares on 19 October – the last trading day before the proposal was submitted.
The offer also provides a 38 per cent premium to Santos’ 1-month volume weighted average (VWAP) price up to 19 October, and 40 per cent premium to the VWAP since 21 August 2015 which was the date on which Santos announced its strategic review.
John Ellice-Flint led Santos management to create over AUD8 billion (USD5.8 billion) of value while the company was under his stewardship from December 2000 to June 2008. Ellice-Flint is widely regarded as one of the foremost oil and gas executives in Australasia.
Ellice‐Flint would serve as Executive Chairman of the privatised Santos should any Indicative Proposal ultimately succeed.
Ellice‐Flint says: “Our vision is to build Santos into an Asian oil and gas leader, based in South Australia, harnessing the skills and experience of the Santos workforce."