Woodside Energy has withdrawn plans to take more than the Papua New Guinea-focused oil and gas producer Oil Search.
Perth-primarily based oil and gas giant Woodside launched an $ 11.6 billion bid to take more than Oil Search in September.
Oil Search’s board unanimously rejected the proposal, saying it was “very opportunistic” and grossly undervalued the firm.
Woodside had supplied investors 1 Woodside share for each and every 4 Oil Search shares they owned.
In a statement to the Australian Stock Exchange (ASX), Woodside said it had advised the Oil Search board that it had withdrawn its proposal to merge the companies.
“Woodside is not pursuing any option transactions to combine the firms,” the statement mentioned.
Oil Search also posted a statement to the ASX, saying it noted Woodside’s choice.
“As previously advised, the Oil Search board concluded that the indicative Woodside proposal grossly undervalued the business,” the statement mentioned.
“Oil Search remains focused on delivering value for its shareholders, by continuing to produce from its low-price assets and progressing the improvement of its globe-class growth projects.”
Shares in Oil Search slumped 15.43 per cent to $ six.36 at 11:35am (AEST), whilst Woodside shares dipped three.68 per cent to $ 26.97.
Oil Search owns 29 per cent of the PNG LNG Project, operated by energy giants Exxon Mobil and Total.
Soon after the bid was launched, the ABC reported that Woodside’s provide looked “rather low-ball” and that the merger did “not seem to be a deal with a lot of synergies to be exploited”.
Topics: mining-business, oil-and-gas, company-economics-and-finance, perth-6000, wa, papua-new-guinea