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 news follows four and a half months after the Korean company made Senex its offer of $4 a share.
This revised offer values Senex at close to $900 million.
In addition to the cash offer price, Senex intends to pay a dividend of up to $0.05 per share for the half year ending 31 December 2021, subject to review by the board.
The dividend will not be conditional on the implementation of the scheme and remains subject to review by the Senex board.
The board unanimously recommends that shareholders vote in favour of the scheme, in the absence of a superior proposal.
An independent expert will also conclude whether or not the scheme is fair and reasonable and in the best interest of shareholders.
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; however, this is a separate deal between the bidder and co-investor.
Senex has appointed Macquarie Capital and Rotschild & Co as financial advisors for the scheme.
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