Santos raises $1.17b in share offer
Adelaide-based oil and gas producer Santos has raised $1.17billion from an institutional entitlement offer in a bid to reverse its financial fortunes.
Santos announced yesterday about 86 per cent of entitlements made available to eligible institutional shareholders were taken up.
The buy-up comes after a trading halt was put on Santos shares on Monday when it announced plans to raise a $3.5b rescue package to cut its debt.
Shares cleared at $4.60 which represented a premium of $0.75 above the offer price of $3.85.
Eligible shareholders who did not take up their entitlements and ineligible institutional shareholders will receive $0.75 for each entitlement sold.
Santos also announced an entitlement offer to raise $2.5b.
Shareholders can purchase shares at the offer price of $3.85 for every 1.7 share they own.
Santos’ executive chairman Peter Coates AO said the Institutional Entitlement Offer attracted strong demand from institutional shareholders.
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“The successful uptake of the Institutional Entitlement Offer is a clear sign of confidence in the package of capital initiatives Santos announced this week to strengthen our balance sheet and restore long term value for shareholders,” Coates said.
Santos announced to the ASX the retail entitlement offer is expected to raise about $1.35b.
The offer will open at 9am (AEST) on Tuesday, November 17 at a offer price of $3.85.
Entitlements not taken up will be offered up at a bookbuild on December 3.
