Senex Ltd., Brisbane, entered into a binding scheme implementation agreement with South Korean group POSCO International where POSCO will acquire 100% of Senex’s shares for $4.60/share (Aus.).
The price values Senex at around $900 million.
The offer comes months after POSCO made its initial offer of $4/share at end July. That offer was followed by three subsequent non-binding proposals: Aug. 27 ($4.20/share), Sept. 2 ($4.40/share), and Nov. 8 ($4.60/share).
The scheme is conditional on the approvals of Senex shareholders, Australian Foreign Investment Review Board, the South Korean foreign exchange and an independent expert’s report concluding the offer is fair and reasonable.
The deal also is contingent on completion of the proposed acquisition of Australia Pacific LNG’s natural gas fields in Queensland production licenses PL209 and PL445 for $80 million (Aus.). The gas fields are adjacent to Senex’s Atlas gas development which will increase Atlas production to 30 petajoules/year in 2024.
Senex directors have recommended that shareholders vote in favor of the scheme provided there is no superior proposal.
A meeting is likely to be scheduled for March 2022 and, if approved, the deal is expected to be completed by the end of that month.
POSCO has said that if its acquisition is successful, Hancock Energy, run by Australian magnate Gina Rinehart, will acquire 49.5% indirect interest in Senex.
In a separate announcement Dec. 13, Senex said it made a domestic sales agreement with Shell Energy for the supply of eight petajoules of natural gas over 4 years beginning in 2022.
The gas will be supplied from Wallumbilla hub in southeast Queensland at a fixed price in line with current market levels.