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- The merger between Santos (STO) and Oil Search (OSH) has now become effective following shareholder and National Court of Papua New Guinea approvals
- The merged company will create a “regional champion of size and scale,” with a market capitalisation of around $22 billion
- Santos’ Managing Director and CEO, Kevin Gallagher, said the companies are “stronger together”
- Three non-executive directors from Oil Search will join the Santos Board
- On the market, Santos is down 2.49 per cent and trading at $6.46 per share, while Oil Search was down 2.54 per cent and is trading at $4.04 each
The merger between Santos (STO) and Oil Search (OSH) has become effective following shareholder and National Court of Papua New Guinea approvals.
Santos has been looking to purchase Oil Search since mid-year.
Oil Search shareholders will receive 0.6275 new Santos shares for each Oil Search share held.
According to Santos chairman Keith Spence, the merged company will create a “regional champion of size and scale,” with a market capitalisation of around $22 billion.
Following the merge, Santos will have a pro-forma 2021 production of approximately 117 million barrels of oil equivalent.
Santos’ Managing Director and CEO, Kevin Gallagher, said the companies are “stronger together.”
“The merger creates a company with strong and diversified cash flows, providing a platform to deliver shareholder returns and successfully navigate the transition to a lower carbon future,” he said.
“Additionally, the merger builds on our industry-leading approach to ESG through the
combination of Santos’ leading carbon capture and storage capabilities with Oil Search’s
social programs in PNG and North America.”
As part of the agreement three non-executive directors from Oil Search will join the Santos Board.
On the market, Santos was down 2.49 per cent and trading at $6.46 per share, while Oil Search was down 2.54 per cent and is trading at $4.04 each at 1:12 pm AEDT.
