Senex has entered into a binding scheme implementation agreement (SIA) with POSCO International, whereby the company will acquire 100 per cent of Senex’s shares for a cash offer price of $4.60 per share.
This latest offer constitutes a revised offer from the takeover bid made in October for $815 million, equivalent to $4.40 per share.
POSCO made its first submission on 30 July of $4 per share, making the SIA more than four months in the making.
According to Senex, board unanimously recommends that shareholders vote in favour of the scheme, in the absence of a superior proposal.
Senex chairman Trevor Bourne said that throughout the company’s discussions with POSCO, the board has been focused on maximising value for its shareholders.
“The offer announced today, which is recommended by the board, reflects an attractive value for Senex and the opportunity for our shareholders to realise a certain cash price for their shares,” Bourne said.
The scheme is still conditional to approvals from Senex shareholders, the court, the Foreign Investment Review Board and Korean foreign exchange.
The scheme is also contingent on the completion of the proposed acquisition of natural gas fields PL 209 and PL 445.
Senex expects a scheme meeting to occur in March 2022 and if approved, the transaction is expected to be completed in late March 2022.
POSCO has announced its intention that, if successful in its acquisition, Gina Rinehart’s Hancock Energy will acquire 49.9 per cent indirect interest in Senex.
Senex has appointed Macquarie Capital and Rotschild & Co as financial advisors for the scheme.
For more information visit the Senex website.