Shares of Santos (ASX:STO) rose nearly 1% in Monday morning trade after the company signed an exclusivity agreement granting due diligence access to a consortium led by XRG, a unit of Abu Dhabi National Oil Company, for six weeks, over a non-binding proposal to acquire the company for $5.76 per share in cash.
The consortium will use the exclusivity period to conduct due diligence and negotiate a binding scheme implementation deed, according to a late Friday Australian bourse filing.
The exclusivity terms will include a fiduciary exception allowing the Santos board to consider superior proposals from week four, the filing added.
The company has advised shareholders not to take any action at this time.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.