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.