Overview

• Santos extended XRG’s exclusivity to September 19, keeping talks alive on an all-cash takeover while cautioning there is no certainty of a binding agreement.
• XRG informed Santos it has not uncovered issues in due diligence that would cause it to withdraw its indicative proposal.
• Santos said that even if a Scheme Implementation Agreement is reached, the consortium would need at least four additional weeks for internal approvals, lengthening the timeline.
• Any deal would require clearances from Australia’s FIRB, ASIC and NOPTA as well as authorities in the United States and Papua New Guinea, with union and political concerns over foreign control intensifying.
• Santos reported first-half net profit of about US$439 million, highlighted near-completion of the Barossa project and progress at Pikka, and its shares remained below the A$8.89 indicative offer price.