Santos (ASX:STO) in Spotlight After Receiving Takeover Proposal from XRG Consortium

June 16, 2025 04:26 PM AEST | By Team Kalkine Media

Santos (ASX:STO) in Spotlight After Receiving Takeover Proposal from XRG Consortium — Image source: Shutterstock

A Closer Look at the Proposal

The XRG Consortium has tabled a non-binding offer of US$5.76 (A$8.89) per share for all ordinary shares of Santos. This offer represents a notable 28% premium to the company's last closing price and even greater premiums when compared to volume-weighted averages across various timeframes.

Described as a “final non-binding indicative offer,” the current proposal is the latest in a series of confidential approaches. Previous offers were made on 21 March 2025 and 28 March 2025, at US$5.04 (A$8.00) and US$5.42 (A$8.60) per share respectively, suggesting increasing interest and valuation from the consortium.

Conditions and Due Diligence

As is customary in such large-scale corporate transactions, the proposal remains subject to several key conditions. These include the completion of satisfactory due diligence, execution of a scheme implementation agreement, and regulatory approvals from relevant authorities.

The strategic nature of this move aligns with broader trends in the energy sector, where consolidation and global partnerships have been gaining momentum. In this context, the Santos deal could influence the trajectory of other energy players on the ASX200.

Shareholder Path Forward

While the Santos Board has not yet reached a definitive agreement, it has indicated that it will recommend shareholders vote in favour of the acquisition—provided the terms are agreeable and independently validated by an expert. This stance reflects both the strength of the proposal and the strategic growth considerations in play.

Market watchers and shareholders alike will be closely monitoring how discussions unfold in the coming weeks. The eventual decision could mark a turning point not only for Santos but potentially for broader sector activity on the ASX.

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