Korean Foreign Exchange has approved POSCO International’s proposed acquisition of Senex, satisfying another precondition for the deal.
Senex announced receipt of approval on 3 February 2022 following the recent update that Senex had successfully acquired two gas fields adjacent to its Atlas site from Australia Pacific LNG, meeting a key condition of the former’s $900 million takeover.
The takeover price is equivalent to a cash offer of $4.60 per share.
Receipt of the Foreign Exchange Condition was one of the necessary precedents that needed to be satisfied under scheme implementation agreement (SIA) between the companies.
Approval was awarded under article 18 of the Republic of Korea’s Foreign Exchange Transaction Act.
The implementation of the scheme remains subject to other conditions as outlined in the agreement. There are now only two remaining obstacles in the way of the deal: a shareholders vote and the Foreign Investment Review Board.
The Senex board has unanimously recommended the takeover in lieu of a better offer, and POSCO hopes to acquire the company in its mission to electrify industry.
A copy of the SIA was released on 13 December 2021.
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