Oil Search Ltd. shareholders voted in favor of the proposed merger with Santos Ltd., Adelaide, that is expected to create a new $23 billion (Aus.) international oil and gas producer with assets in Australia, Papua New Guinea, and Alaska.
Oil Search said 95.43% of the proxy votes cast supported the merger.
The move was preceded Dec. 6 by an approval letter from the Securities Commission of Papua New Guinea for the vote to move forward.
The merger was first announced Sept. 10 in which Santos offered 0.625 of its shares for every Oil Search share (OGJ Online, Sept. 10, 2021). On implementation of the scheme existing Oil Search shareholders will own 38.5% of the merged entity while existing Santos shareholders will own 61.5%.
Conditions remain, including final approval in a second PNG Court hearing on Dec. 9.
If the court gives its approval, Oil Search shares will trade for the last time Dec. 10 and trading of new Santos shares will begin Dec. 13 on a deferred settlement basis.
Oil Search will then become a wholly-owned subsidiary of Santos and be delisted from both the Australian and Papua New Guinea stock exchanges.
The effective implementation date for the merger will be Dec. 17, and the new Santos shares will begin trading Dec. 20 on an ordinary settlement basis.