Santos Ltd. and Oil Search Ltd. have agreed to extend the exclusive due diligence period related to the proposed merger of the two companies to Sept. 13.
The July proposal was revised in August to note that Santos would acquire all Oil Search shares for a consideration of 0.6275 new Santos shares for each Oil Search share. The transaction would be by a scheme of arrangement (OGJ Online, Aug. 2, 2021; July 20, 2021).
Subject to each party completing due diligence and entry into a merger implementation agreement, Oil Search said its board intends to unanimously recommend that shareholders vote in favor of the proposal in the absence of a superior proposal and subject to a best-interests assessment by an independent expert.
Oil Search cautioned that there was no certainty that the merger proposal will result in a transaction.
If the merger were to go ahead, it would result in a combined entity with a market capitalization of $21 billion (Aus). On 2021 figures, the combine would hold total production of 116 MMboe along with 2P and 2C resources of about 5 billion boe.
