The Senex Energy Ltd (ASX: SXY) share price is pushing higher on Monday morning.
At the time of writing, the energy producer's shares are up 4.5% to $4.65.
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Why is the Senex share price charging higher?
The Senex share price is on the move today after revealing that it has received a further improved non-binding proposal from POSCO International Corporation.
According to the release, POSCO has increased its takeover proposal to $4.60 cash per share.
This is up from previous offers of $4.00 per share in July, $4.20 per share in August, and $4.40 per share in September. In addition, the company notes that it still intends to pay shareholders a 5 cents per share dividend for the six months ending 31 December.
Will a deal be done?
On this occasion, the Senex Board appear pleased with POSCO's offer.
Subject to negotiating an acceptable scheme implementation agreement, no superior proposal, and the independent expert's report, the Senex Board intends to unanimously recommend that shareholders vote in favour of the proposed transaction.
It also notes that it has agreed to extend POSCO's exclusivity period to 26 November. This is to provide time to negotiate and enter into a binding agreement and for POSCO to obtain its internal approvals. POSCO has confirmed to Senex that it has now completed all of its due diligence enquiries.
Senex highlights that during the diligence process, it provided information to POSCO in respect of its proposed acquisition of APLNG natural gas fields PL 209 and PL 445 for $80 million, which was announced to the market today. POSCO has confirmed to Senex that its cash offer price is inclusive of the value attributable to the proposed acquisition of these natural gas fields.
POSCO also informed Senex that it wishes to enter into discussions and share information with Hancock Energy. This is regarding the possible participation of Hancock should the proposed scheme be successful.
The Senex share price is up a massive 84% in 2021.
