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    Posco International acquires Australia's Senex Energy for $610mn

Summary

Senex said its board unanimously recommends that shareholders vote in favour of the deal, in the absence of a superior proposal.

by: Shardul Sharma

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Posco International acquires Australia's Senex Energy for $610mn

South Korea’s Posco International has agreed to acquire Australian oil and gas producer Senex Energy for A$885mn ($610mn), Senex said on December 13.

Posco International, a unit of steel giant Posco, agreed to pay a cash price of A$4.60/share. Senex also plans to pay a dividend of A$0.05/share for the half-year ending December 31.

Senex said its board unanimously recommends that shareholders vote in favour of the deal, in the absence of a superior proposal and the independent expert concluding that the scheme is “fair and reasonable and therefore in the best interests of shareholders”.

Australian billionaire Gina Rinehart's Hancock Energy will also buy an indirect stake in Senex if the acquisition goes through. However, this is not a condition to the scheme proceeding, Senex said.

The deal now needs approval from Senex shareholders, court, Australia's Foreign Investment Review Board and Korean foreign exchange. The acquisition is also conditional upon completion of the proposed acquisition of natural gas fields PL 209 and PL 445. The transaction is expected to complete in March next year.