Senex yields to Korean interest as Rinehart looks for a stake
Natural gas producer Senex will recommend shareholders accept a $890 million takeover offer from Korea’s POSCO, just as Gina Rinehart’s Hancock Energy made a move to get involved.
Senex has recommended acceptance of a POSCO takeover offer
Senex recommended the offer while at the same time announcing a binding agreement with APLNG to buy undeveloped gas fields for $80 million and expand its Atlas production to 30 petajoules a year.
The company said POSCO has improved its offer to $4.60 a share. In addition, Senex will pay a dividend of 5 cents a share.
POSCO also told Senex that it was now negotiating with Hancock Energy regarding possible involvement in the deal, should it be finalised. However, the POSCO deal would go ahead even if Hancock pulled out.
POSCO said its cash offer for Senex was inclusive of the APLNG deal which would have a significant impact on Senex’s production.
Managing director Ian Davies said the APLNG acquisition increased and quality and scale of the company’s portfolio.
“The acquisition of these undeveloped gas fields adjacent to Atlas continues Senex’s growth trajectory in the Surat Basin and reinforces the company’s low-cost, hub and spoke infrastructure operating model,” he said.
The deal still needs to meet various conditions such as approval from the Foreign Investment Review Board.
