The energy producer’s shares are up 2.7% trading at $4.57 at the time of writing.
Senex is a Brisbane-based national gas producer operating in the Surat Basin near Roma, central Queensland.
What did Senex announce today?
Senex advised it has signed off on an $852 million acquisition deal with Posco International Corporation.
The South Korean company will acquire all Senex shares at $4.60 apiece, with Senex agreeing to pay shareholders a dividend of up to 5 cents per share as part of the agreement.
The deal will depend on approval from shareholders, the Korea Exchange (KRX) and the Foreign Investment Review Board.
In another twist, Senex announced today that Hancock Energy Corporation, owned by Gina Rinehart, intended to acquire a 49.9% indirect interest in Senex if the deal went ahead. However, this is not a condition of approval.
Commenting on the news, Senex chair Trevor Bourne said:
Throughout our discussions with Posco International Corporation, the Senex board has been focused on maximising value for our shareholders.
The offer announced today, which is recommended by the board, reflects an attractive value for Senex and the opportunity for our shareholders to realise a certain cash price for their shares.
Deal with Shell Energy
In another release to the ASX today, Senex announced a new domestic gas sales agreement with Shell Energy Limited.
The company will supply roughly 8 petajoules of natural gas at Wallumbilla Hub at a fixed market price.
Senex CEO and managing director Ian Davies welcomed the Shell deal, saying:
We are proud to continue supporting the economy and jobs in local communities, and helping Australia transition to a lower carbon future.
Senex share price snapshot
Investors have seen positive returns in the past year. The Senex share price has lifted 68% over the past 12 months and is up around 81% this year to date.
In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned 11% in the past year.