XRG-led consortium kicks off due diligence for Santos takeover

Australian oil and gas producer Santos granted the consortium led by Adnoc’s international investment arm XRG six-week exclusive due diligence access, starting 27 June, as part of a potential USD 18.7 bn takeover, according to a disclosure(pdf). During this exclusivity period, Santos is bound by “no shop,” “no talk,” and “no due diligence” clauses, though a fiduciary exception remains in place should a superior offer emerge after four weeks.

Background: The consortium, which includes Abu Dhabi sovereign wealth fund ADQ and private equity firm Carlyle, submitted earlier this month an indicative, non-binding USD 18.7 bn takeover bid to acquire Santos. The consortium would pay USD 5.76 (AUD 8.89) per share as part of the transaction.

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.