Senex share price (ASX:SXY) lifts on new $852 million acquisition deal

Senex has released 2 major announcements to the market today.

| More on:
Two miners wearing hard harts shake hands over a business deal, representing the news announced today that Worley has won a contract from Santos

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Senex Energy Ltd (ASX: SXY) share price is climbing today after the company announced its takeover by a South Korean company.

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.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Mergers & Acquisitions

an engineer in hard hat stands amid solar panels, part of a solar farm, as she holds a tablet in her hand and smiles.
Mergers & Acquisitions

Genex share price climbs 6% amid new takeover rumours

There's speculation another group may launch a bid for the renewable energy company.

Read more »

rising medical asx share price represented by woman stretching happily in bed
Mergers & Acquisitions

ResApp share price explodes 50% on new Pfizer deal

The ResApp share price is launching upwards after Pfizer upped its takeover bid for the company.

Read more »

a man peers out from a high collared jacket with just his eyes and nose visible amid a swirling snowstorm.
Mergers & Acquisitions

Orica share price in the freezer amid acquisition and $650m cap raise

The explosives company is forking out $260 million in cash to buy Axis Mining Technology.

Read more »

A man stands with his arms crossed in an X shape.
Mergers & Acquisitions

No deal: Genex share price lifts as $300m takeover bid rejected

Genex has knocked back an offer put forward by a consortium including Atlassian co-founder Scott Farquhar's investment fund.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
Mergers & Acquisitions

Own Woolworths shares? Here’s what a top broker is saying about its latest acquisition

Here's what a top broker is saying about Woolworths' new acquisition...

Read more »

Three satisfied Whitehaven coal miners with their arms crossed looking at the camera proudly
Mergers & Acquisitions

Maca share price leaps 23% on Thiess takeover news

Mining services giant Thiess has put forward a $350 million bid for the company.

Read more »

A business woman looks unhappy while she flies a red flag at her laptop.
Mergers & Acquisitions

Own ANZ shares? Tech experts raise red flags over Suncorp integration

IT specialists reportedly believe the big four bank could struggle to integrate Suncorp's banking platform.

Read more »

an engineer in hard hat stands amid solar panels, part of a solar farm, as she holds a tablet in her hand and smiles.
Mergers & Acquisitions

Genex share price rockets 50% on confirmed takeover bid

Atlassian’s Scott Farquhar’s investment firm Skip Capital has partnered with Stonepeak to post an acquisition bid for Genex.

Read more »