- Oil Search is under a bidding war with Santos Limited (ASX: STO).
- Oil search received a non-binding and indicative change of control proposal confidentially.
- CEO of Oil Search, Dr Keiran Wulff resigned.
Energy producing company Oil Search Limited (ASX: OSH) share prices are on the move as events unfolded from the first week of July 2021.
What is happening in Oil Search Limited?
Papua New Guinea-based energy producing company Oil Search is undergoing a bidding war with Santos Limited (ASX: STO).
A sharp increase of 6% was observed in the company shares on 20 July 2021 as the company received a non-binding and indicative change of control proposal confidentially.
OSH rejected the confidential merger offer of $23 million as it was deemed unfit for the shareholders.
The company stated that the offer did not justify the company’s current value. Therefore, it is expected that STO will increase the offer in the near future.
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Exit of CEO of OSH, Dr Keiran Wulff
On 19 July 2021, the CEO of OSH, Dr Keiran Wulff announced a surprise exit from the company. Share price closed at AU$3.960 that day, 3% down from the month’s beginning. As per the ASX announcement, Dr Wulff resigned from the post due to deteriorating health conditions.
PNG Biomass Purchase Agreement termination notice
OSH shares were up by 0.13% in the early trading hours on 5 July 2021. The company announced looking forward to working with PNG Power Limited (PPL) post an unanticipated termination notice related to PNG Biomass Purchase Agreement that involved construction of a solar firm and a power plant. The company entered into the agreement with PPL in 2015, supporting PNG government’s goal to diversify country’s energy mix and add to job creation.
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What is the present situation of Oil Search?
Like other energy companies, Oil Search shares are adversely affected by the global lockdown and the adverse change in the prices of oil. However, the company’s strategy of sustainable development and crisis management strategy has helped the company to maintain its financial position.
OSH shares traded at AU$3.975 at 1:23 PM AEST on 26 July 2021 with a market cap of AU$8.29 billion.