ADNOC's XRG in bid to buy Australian energy firm Santos

Dubai: ADNOC's investment platform XRG along with Abu Dhabi investment giant ADQ is making a move to buy the Australian energy company Santos.

Carlyle, the global investment firm, is the other member of the consortium alongside XRG and ADQ that's made a 'final' non-binding proposal to buy all of the ordinary shares of Santos Ltd.

The offer price is set at $5.76 per share in cash.

The Santos' Board of Directors plans to 'unanimously' recommend the XRG consortium's proposal to Santos shareholders in the 'absence of a superior proposal'. And 'subject to an independent expert concluding and continuing to conclude that the proposal is fair and reasonable and in the best interests of Santos shareholders', said a statement.

If the deal happens, this will be another major international play for XRG, which was expressly set up by ADNOC to explore energy sector linked global opportunities.

In making the bid, the 'XRG-led consortium brings extensive sector experience, long-term vision and investment capacity and aims to ensure that Santos continues to thrive as a business', the statement added.

If its proposal is passed, then the bidder will:

* Maintain Santos’ headquarters in Adelaide, brand, and operational footprint in Australia and key international operating hubs.

* Work closely with the existing management team to accelerate growth and support local employment and the communities where Santos operates.

* Invest in Santos’ growth and further development of its gas and LNG focused business which will provide reliable and affordable energy and low carbon solutions to customers in Australia, the Asia Pacific and beyond.

"This will reinforce Australia’s position as a responsible energy partner and contributor to domestic and regional energy security," said the statement.

And the plan will also 'ensure Santos remains a contributor to the transformation of energy systems and continues to make future-facing investments in Santos’ carbon capture and storage projects, low carbon fuels (and) other decarbonization initiatives'.

What the XRG consortium's proposal for Santos is about

* The XRG-led consortium proposes to acquire 100% of the ordinary shares in Santos for $5.76 per share in cash, adjusted for any dividends declared or paid by Santos prior to implementation of the Proposal.

* This announcement does not amount to a firm intention to make a binding offer and there can be no certainty that an offer will be made or any transaction will proceed