Australian coal seam gas producer Senex Energy Ltd. has received a takeover offer from POSCO International Corp.
The offer was AUD815 million (USD605 million) but Senex is looking to sweeten the offer by opening up its books to POSCO until November 5. The offer translates to AUD4.40/share (USD3.2687/share) and a 15% premium over Senex's share close last Friday.
On Monday, just below the tentative offer price, Senex's shares jumped 15% on Monday to AUD4.38 (USD3.25).
For POSCO, if the acquisition is realized, it would be able to secure natural gas reserves to replace its existing natural gas sources. It would also be an off-market takeover offer subject to a 50.1% minimum acceptance condition and approval from the Foreign Investment Review Board.
Originally, POSCO made its approach on July 30 with an AUD4/share (USD2.97/share) bid. A month later, the bid was raised to AUD4.20/share (USD3.12/share) before raising it again in September.
