The National, Wednesday September 9th, 2015
WOODSIDE Petroleum Ltd says it has offered a proposal worth more than A$13 billion (K25.4bn) to merge with Oil Search Ltd and acquire all its shares.
The Australian petroleum firm yesterday provided Oil Search a confidential and non-binding proposal to merge through a scheme of arrangement under the Papua New Guinea Companies Act of which under the proposal, Woodside would acquire all Oil Search shares for a consideration of one of Woodside share for every four Oil Search shares
In making the announcement yesterday, Oil Search said the proposal was subjected to several conditions, including;
- Completion by Woodside of satisfactory due diligence on Oil Search;
- Execution of a mutually acceptable confidentiality agreement;
- Oil Search granting an agreed period of exclusivity;
- Oil Search obtaining support from key stakeholders and shareholders; and,
- Woodside being satisfied that the transaction is likely to be supported by the PNG Government on acceptable terms.
Oil Search said the proposal, if successful, would go through the PNG Government and Court for further approvals.
However, Oil Search stated that there was no guarantee that a binding proposal would be agreed to between the parties. The company said with consideration to its equity position in the low cost PNG LNG and the Papua LNG projects, Oil Search shareholders were entitled to an offer that adequately reflected value of these potentials.