[Ferro-Alloys.com] POSCO International Corporation further increases its offer to purchase Senex Energy (SXY) for $4.60 cash per share

This is the third time POSCO has increased its offer, as just last month it offered $4.40 cash for each share

Senex has also agreed to extend POSCO’s exclusivity period to November 26 to provide time to negotiate and enter into a scheme implementation agreement

Additionally, Senex has also signed a binding agreement with Australia Pacific LNG to purchase undeveloped gas fields PL209 and PL445 for $80 million

On the market this morning, Senex is up 4.15 per cent and is trading at $4.65 per share

POSCO International Corporation has further upped its offer to purchase Senex Energy (SXY).

The South Korean company is now offering SXY shareholders $4.60 cash per share, a 25 per cent premium to the 30-day volume-weighted average price.

This is the third time POSCO has increased its offer. Just last month it offered $4.40 cash for each share.

POSCO is listed on the Korea Stock Exchange and has a market capitalisation of US$2.2 billion (nearly A$3 billion). It specialises in oil and gas exploration and production, LNG, agri-resources and steel trading.

The deal remains subject to the scheme implementation agreement, no superior proposal and an independent expert concluding the transaction is fair and reasonable.

Senex has also agreed to extend POSCO’s exclusivity period to November 26 to provide time to negotiate and enter into a scheme implementation agreement.

The Senex board intends to unanimously recommend that shareholders vote in favour of the proposed transaction.

Notably, if the acquisition is successful, POSCO informed Senex it wishes to enter into discussions with Hancock Energy. Senex said it will pass on the needed information to Hancock as long as a confidentially agreement is signed.

Additionally, Senex intends to pay a dividend of $0.05 per share for the half year, ending December 31, however this is subject to review at the time.

Senex to purchase gas fields

Senex has also announced it has entered into a binding agreement with Australia Pacific LNG to purchase undeveloped gas fields PL209 and PL445 for $80 million.

Notably, the gas fields are near Senex’s Atlas natural gas development.

The initial purchase cost is $50 million, with a further $30 million payment upon receipt of satisfactory Commonwealth environmental approvals.

Managing Director and CEO Ian Davies said the purchase increased the quality and scale of Senex’s natural gas supply portfolio.

“The acquisition of these undeveloped gas fields adjacent to Atlas continues Senex’s growth trajectory in the Surat Basin and reinforces the company’s low-cost, hub-and-spoke infrastructure operating model,” Mr Davies said.

“Atlas is a high-quality development, providing reliable, affordable and sustainable supplies of natural gas to Australian manufacturers, supporting the economy and jobs in local communities.”

• [Editor:tianyawei]