Response To Santos Takeover Proposal
Santos is one of South Australia’s most significant companies and a major employer of South Australians.
The State Government’s priority at all times is safeguarding South Australian jobs and ensuring the company remains headquartered in Adelaide.
Santos confirmed to the ASX today that it had received a takeover bid from a consortium led by XRG P.J.S.C – a subsidiary of Abu Dhabi National Oil Company – and including the Abu Dhabi Development Holding Company and private equity firm Carlyle.
The board told the market that subject to reaching agreement on a binding scheme implementation agreement, it intended to unanimously recommend that Santos shareholders vote in favour of the deal.
This Government has recently passed changes to the Petroleum and Geothermal Energy Act, enshrining that any application for approval of a change in the holder of a licence under the Act must be approved by the Minister.
This legislation gives the State Government leverage to ensure the State’s interests are properly served in the event of any change in ownership.
Premier Peter Malinauskas has spoken with XRG leadership this morning and looks forward to ongoing engagement as the State assesses this proposition for South Australia.
As put by Peter Malinauskas
The State Government’s priority at all times is to ensure that South Australian jobs remain in South Australia, and to maintain Santos’ headquarters in Adelaide.
I spoke today with XRG who briefed me about their plans, and we welcome the opportunity to continue this positive engagement.
Any judgements we make regarding this process will be made in the state’s best interests.
As put by Tom Koutsantonis
Just as Santos must act in the best interests of its shareholders, the SA Government will act in the best interests of South Australians.
There are levers available to the State Government to ensure that the State has a say in this potential takeover, and our main objective will be to safeguard Santos jobs and retain its headquarters in SA.
Legislation passed by this Government ensures that Ministerial approval is required for a change in the controlling interest of a licence holder.
We will be looking at this proposal carefully and engaging constructively with the proponents.