“The Senex board believes it is in the best interests of its shareholders to continue to engage with POSCO International and will assess any proposal received on its merits,” a spokesperson for the Senex said.
On 2 September, POSCO submitted a revised non-binding indicative proposal to acquire 100 per cent of Senex for a cash offer price of $4.40 per share.
This represents a 15 per cent premium over Senex’s share close last Friday.
This followed the submission of two prior non-binding proposals: on 30 July of $4.00 per share, and 27 August for $4.20 per share.
The Senex board carefully considered the revised proposal, and on 15 September, the company granted POSCO a period of exclusivity in order to complete due diligence enquiries.
Following further discussions, Senex has now agreed to extend POSCO’s exclusivity period to 5 November, in order to provide the company with additional time to assess a further revised proposal at a higher prise than $4.40 per share.
POSCO has indicated that if a transaction proceeds, it is likely to be implemented by way of an off-market takeover offer, with would be subject to a majority acceptance condition and Foreign Investment Review Board approval.
There is no certainty that discussions will result in any binding agreement, and Senex will update shareholders in due course.
For more information visit the Senex website.
