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Oil Search rejects Woodside’s US$8 takeover bid

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Hydrocarbon Engineering,

The Board of Oil Search Limited has unanimously decided to reject Woodside’s non-binding conditional indicative proposal to acquire all the shares in OilSearch for a consideration of one Woodside share for every four Oil Search shares held. The Board has concluded that the Proposal is highly opportunistic and grossly undervalues the company.

Rick Lee, Oil Search’s Chairman, commented: “The Board of Oil Search believes our Company is in a very strong position, both operationally and financially. We have a low cost, high quality, production base which is generating strong cash flows and excellent growth opportunities, with the proposed PNG LNG Train 3 and Papua LNG among the most competitive new developments in the world. Oil Search provides its shareholders with a pure exposure to PNG and is fully committed to PNG. Our focus is on continuing to build and create shareholder value through the Company’s strong future growth prospects. If any proposals are tabled in the future that reflect compelling value for Oil Search shareholders, we will engage on them. Clearly this proposal falls well short of that test.”

Responding to the rejection, Woodside stated that it is “surprised and disappointed” at the decision. Read Woodside’s full response here.

Edited from press release by

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