Why Santos’s (ASX:STO) largest shareholder sold nearly 11 million shares

Source:panuwat phimpha ,Shutterstock

Summary

  • Santos Ltd (ASX:STO) said that its largest shareholder ENN Group (ENN) had sold nearly 107.1 million shares.
  • Santos said that the sale process was oversubscribed and had received strong support from existing and new institutional shareholders.
  • Due to the stake sale, the strategic relationship agreement signed between the two companies in 2017 regarding the board representation and other matters was no longer effective.

Santos Ltd (ASX:STO) on Monday said that its largest shareholder ENN Group (ENN) had sold nearly 107.1 million shares. The 5.14 per cent stake at A$7.33 per share stands at A$785 million.

Image Source: © Cmmeraydave | Megapixl.com

Santos said that the sale process was oversubscribed and had received strong support from existing and new institutional shareholders. ENN has advised Santos that it remained fully supportive of Santos’s strategy, the future direction, and was excited to remain the company’s largest individual shareholder with a 9.97 per cent stake. 

Due to the stake sale, the strategic relationship agreement signed between the two companies in 2017 regarding the board representation and other matters was no longer effective. Accordingly, the ENN-nominated director Eugene Shi would now resign from the Santos’s Board following the completion of the sale.

Meanwhile, the sales revenue of Australia’s second-largest oil and gas producer dipped 16 per cent from nearly US$4 billion in 2019 to around US$3.4 billion in 2020. The company generated US$740 million in free cash flow for 2020, representing 3.5 times greater amount than that of 2016 level, when oil prices were in a similar range.

Image Source: © Cmmeraydave | Megapixl.com

The company reported an annual net loss after the taxes of US$357 million.

READ MORE: Bitcoin Stays Below $50,000 As Worries Over Digital Yuan Resurface

Stock performance 

On Friday, 5 March 2021, the shares of Santos closed at A$7.76, up 5.14 per cent, against the previous closing on Thursday, 4 March 2021. The stock has given a return of 20.68 so far this year. The 5-year return stands at 109.5 per cent.


READ MORE: EU To Ask the US to Export AstraZeneca/Oxford Vaccine: Report

 


Disclaimer
The website https://kalkinemedia.com/au is a service of Kalkine Media Pty. Ltd. (Kalkine Media) A.C.N. 629 651 672. The principal purpose of the content on this website is to provide factual information only and does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stock of the company (or companies) or engage in any investment activity under discussion. We are neither licensed nor qualified to provide investment advice through this platform. In providing you with the content on this website, we have not considered your objectives, financial situation or needs. You should make your own enquiries and obtain your own independent advice prior to making any financial decisions.
Some of the images that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed on this website unless stated otherwise. The images that may be used on this website are taken from various sources on the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image. The information provided on the website is in good faith, however Kalkine Media does not make any representation or warranty regarding the content, accuracy, or use of the content on the website.

 

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK