Harbour Energy boosts bid for Santos

Cooper Basin. Image: Santos.

United States oil and gas giant Harbour Energy has increased its takeover offer for Santos by $US480 million ($635 million).

Harbour’s latest bid for Santos, which has been described as final, is 4.6 per cent higher than its previous attempt at $US5.21/share, valuing the Australian company at around $14.45 billion.

Santos has advised its shareholders to take no action in response to the updated offer from Harbour.

“The independent directors of Santos will consider the revised Harbour proposal and will update shareholder accordingly,” Santos said in a statement.

Yesterday’s updated offer follows earlier binding, conditional offers from Harbour of $US4.98/share on May 17 and $US5.12/share on May 19.

The revised offer is conditional on Santos undertaking additional hedging of oil-licked production in 2018 of around 30 per cent and changes to hedging in 2019.

In addition, Harbour has indicated the offer price would be increased to a US dollar amount equivalent to $7.00/share if Santos agrees to hedge 30 per cent of oil-linked production in 2020.