Santos shares soar over 15% on ADNOC-led group's $18.7 billion takeover bid

Shares of Santos surged arsenic overmuch arsenic 15.23% Monday, aft it received a non-binding takeover connection of $18.72 cardinal by an Abu Dhabi's National Oil Company-led group.

The determination marks the biggest intraday leap successful the Australian lipid and state producer's shares since April 2020, LSEG information shows.

The takeover bid led by ADNOC's concern limb XRG follows 2 confidential, non-binding and indicative proposals from the aforesaid consortium connected Mar. 21 and Mar. 28, Santos noted successful a Monday announcement.

The consortium besides includes the Abu Dhabi Development Holding Co and planetary backstage equity steadfast Carlyle Group.

It has offered a currency connection terms of $5.76 (8.89 Australian dollars) per Santos share, which translates to a 27.73% premium from its closing terms of AU$6.96 ($4.52) past Friday.

Santos' committee said it intends to "unanimously recommend" the company's shareholders to ballot successful favour of the imaginable transaction, successful the lack of a superior proposal.

XRG's takeover bid comes arsenic the concern steadfast – which has an endeavor worth of implicit $80 cardinal – has been connected the hunt for deals successful the natural gas, chemicals, and lower-carbon vigor solutions space.

Santos has had unsuccessful takeover attempts successful the past fewer years fixed its mediocre stock terms movements.

The institution reportedly rejected offers from U.S.-based Harbour Energy, portion its merger with Australian vigor subordinate Woodside Energy Group fell isolated aft some companies failed to hold connected the valuation.

Still, Santos has remained an charismatic takeover target, especially among players successful the Middle East.

The acquisition of Santos would give the consortium control of 2 Australian liquefied earthy state operations – Gladstone LNG connected the eastbound seashore and Darwin LNG successful the northbound of Australia – arsenic good arsenic stakes successful PNG LNG and the undeveloped Papua LNG.