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Adnoc’s acquisition of Santos could take longer than expected: The XRG-led consortium which submitted in June an indicative, non-binding USD 18.7 bn bid to acquire Australian oil and gas producer Santos said it would need at least four more weeks after due diligence is complete to obtain all the necessary approvals to be able to sign a binding scheme implementation agreement, according to a statement from Santos. The consortium, which also includes Abu Dhabi sovereign wealth fund ADQ and private equity firm Carlye, had recently said it is nearly done with due diligence, for which the deadline is 22 August.
Besides the regulatory approvals, the two firms have yet to “reach agreement on acceptable terms of a binding SIA,” the statement said, though it noted that the due diligence process remains “collaborative.”
REMEMBER- The acquisition would require 75% support from Santos’ investors, as well as approval from several Australian regulators, including the Foreign Investment Review Board, which one analyst said previously could be a risk to the agreement, since it involves critical energy infrastructure in Australia. The company is the biggest supplier of natural gas in Australia, and owns pipeline gas and oil assets as well.
This also means that the exclusivity period granted to the consortium until 22 August is set to expire without the firms reaching an agreement, the statement said. It does not appear to be extending the deadline again, after extending it for two weeks earlier this month.
ADVISORS- Goldman Sachs and JB North & Co are financial advisors to Santos, while Rothschild & Co is acting as independent board advisor. Herbert Smith Freehills Kramer is acting as legal advisor to Santos.
OTHER M&A NEWS-
DP World Australia completed its AUD 174.5 mn (AED 421.3 mn) full acquisition of port-to-door Australian logistics operator Silk Logistics Holdings, implementing the scheme of arrangement that secured shareholder approval on 1 August and court approval on 6 August, according to a statement (pdf). Silk shareholders received AUD 2.14 per share yesterday, and the company is expected to be delisted from the Australian Securities Exchange (ASX) today.
The transaction also brought board changes, with current directors stepping down and DP World Australia CFOs Peter Conomos and Jason Varsamidis, as well as executive vice president for Oceania Nicolaj Noes, taking on the roles of directors. The company secretary was also replaced with DP World’s senior legal director for Oceania Amelia Mitchell.
