Santos logs complaint about shareholding cap

Rick Wilkinson
OGJ Correspondent

MELBOURNE, June 21 -- Santos Ltd., Adelaide, has lodged a formal submission to the South Australian government regarding the government's current review of the 15% individual shareholding cap on the company.

Santos has long complained that the cap limits its growth and share price. The cap was established by the government 28 years ago to prevent takeover moves by the Bond Group that may have put South Australian gas supplies at risk.

In 1979 the Cooper basin was the state's only source of natural gas. Currently supplies also come from Victoria and Queensland. Santos management says the original intent of the shareholding cap is no longer applicable, and the South Australian economy will benefit if the company is allowed to achieve its full growth potential.

The government review, announced May 1, is expected to be complete by July 31.