Oil Search says no to Woodside takeover offer

PNG’s Oil Search has rejected an A$11.6 billion ($8 billion) all-share takeover offer by Australian LNG player Woodside.

Following a detailed evaluation of the proposal, the Board has concluded that the proposal is highly opportunistic and grossly undervalues the company,” Oil Search said in a statement on Monday.

Under the proposal, Oil Search shareholders would receive all scrip consideration of 0.25 Woodside shares for every Oil Search share and represent a 31.7% shareholding in the combined entity.

In a response to Oil Search’s statement, Woodside said it is “surprised and disappointed” that the Board of Oil Search has rejected the proposal without meeting with the company.

Woodside believes the proposal would create the regional oil and gas champion for both Papua New Guinea and Australia with a global portfolio of world class assets and development opportunities which would deliver significant benefits to both companies’ shareholders,” it added.

However, Oil Search, which has a 29 percent stake in the US$19 billion PNG LNG project, left the door open for new, higher offers.

If any proposals are tabled in the future that reflect compelling value for Oil Search shareholders, we will engage on them,” the company said.

 

LNG World News Staff; Image: Oil Search

 

Share this article

Follow LNG World News

Events>

<< Nov 2019 >>
MTWTFSS
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 1

2nd Global LNG Forum

Global LNG Forum is an exclusive networking and knowledge-sharing platform for top experts and business leaders in the industry.

read more >

Budapest LNG Summit 2019

The Budapest LNG Summit is a niche event focused on the up and coming LNG region of Central & Eastern Europe (CEE).

read more >

CWC World LNG Summit & Awards Evening

The CWC World LNG Summit & Awards Evening will be returning to Rome in 2019 to celebrate it’s 20th year.

read more >

LNG Pricing, Trading & Hedging: 3-Day Training Course – Singapore / Jan 2019

This three-day training program provides a unique opportunity to learn and apply the practical skills, knowledge and tools needed to:…

read more >