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South Korean firm launches $815 million bid for Qld gas producer

Business

South Korea’s POSCO International has made a non-binding indicative $815 million takeover bid for Brisbane gas company Senex.

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The offer from POSCO is at $4.40 a share, a hefty premium to Friday’s close of $3.82, but Senex is pushing for more.

It’s the third bid POSCO International has pitched at the company. The two previous offers were at $4 and $4.20.

Senex has now given POSCO a period of exclusivity to do its due diligence, but it also said the time would allow it to “assess a further revised proposal at a price higher than $4.40”.

“POSCO International has indication that if the transaction proceeds it is likely to be implemented by way of an off-market takeover offer which would be subject to a 50.1 per cent minimum acceptance condition and Foreign Investment Review Board approval. However, the transaction would not be subject to a financing condition,” Senex said.

“The Senex board believes it is in the best interest of its shareholders to continue to engage with POSCO international and will assess any proposal received on its merits.”

Senex has appointed Macquarie Capital and Rothschild as financial advisers and Clayton Utz as legal adviser.

It said the was no certainty that negotiations would lead to a binding deal.

POSCO is valued at $US2.4 billion and specialises in oil and gas. It is majority owned by POSCO, a $24 billion company.

 

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