Scepter Partners backs former CEO of Santos with $5.1B to take company private

Scepter Partners has made a nonbinding indicative proposal to acquire 100% of Santos Ltd., an independent oil and gas company in Australia. The offer was at A$6.88 (US$4.97) per share in cash by way of a scheme of arrangement subject to a range of market‐standard conditions which equates to a market value of equity of A$7.1 billion (US$5.1 billion).

The indicative proposal, if implemented, would deliver the following to Santos’ shareholders:

  • 26% premium to Santos’ closing price on Oct. 19, being the last trading day before the proposal was submitted
  • 38% premium to Santos’ one-month volume weighted average (VWAP) price up to Oct. 19
  • 40% premium to the VWAP since Aug. 21, which was the date on which Santos announced its strategic review.

John Ellice-Flint led Santos management to create over A$8 billion (US$5.8 billion) of value while the company was under his stewardship from December 2000 to June 2008. He would serve as executive chairman of the privatized Santos should any indicative proposal ultimately succeed.

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