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Senex Energy (ASX:SXY) - CEO and MD, Ian Davies
CEO and MD, Ian Davies
Source: Senex Energy
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  • Senex Energy (SXY) spikes in early trading action after flagging a takeover bid from South Korean big-cap POSCO International that values SXY at just shy of $815 million
  • POSCO International first offered $4 per share for full control of Senex back in July, but this offer has since been increased twice: first to $4.20 per share then to $4.40 per share
  • On the back of the latest offer, Senex gave POSCO International exclusive access to its books to carry out the necessary due diligence to move forward with the bid
  • Senex says that should the deal go ahead, the transaction will likely take place in the form of an off-market takeover
  • Shares in Senex are up 14.4 per cent and trading at $4.37 each at 12:28 pm AEDT

Senex Energy (SXY) has spiked in early trading action after flagging a takeover bid from South Korean big-cap POSCO International that values SXY at just shy of $815 million.

In early September, the subsidiary of steelmaking giant POSCO offered a twice-improved $4.40 per share for full control of Senex. The bid follows previous offers from POSCO International of $4 per share in late July and then $4.20 per share in August.

On the back of the latest offer, Senex gave POSCO International exclusive access to its books to carry out the necessary due diligence to move forward with the bid.

However Senex said today this exclusivity period had been extended to November 5 in order for POSCO to assess a “further revised proposal at a price higher than $4.40 per share” — meaning the $815 million price tag could yet be increased.

The $4.40-per-share offer price represents a 40 per cent premium to SXY’s 30-day volume-weighted average price (VWAP) on September 2, when Senex first received the offer, and a 19 per cent premium to the 30-day VWAP to when shares last traded on Friday, October 15.

Senex has tapped Macquarie and Rothschild to act as financial advisors for the potential deal, with Clayton Utz appointed as legal advisor.

Senex said that should the deal go ahead, the transaction will likely take place in the form of an off-market takeover, subject to shareholder approval and a green light from the Foreign Investment Review Board (FIRB).

POSCO International is the oil and gas exploration arm of POSCO which, according to Senex, is the sixth biggest steelmaker by production in the world.

POSCO is listed on the New York Stock Exchange with a market cap of US$24.2 billion (A$32.65 billion), while POSCO International is listed in Hong Kong with a 2.8 trillion South Korean won (A$3.2 billion) market cap.

Shares in Senex were up 14.4 per cent and trading at $4.37 each at 11:50 am AEDT. The company has an $809 million market cap.

SXY by the numbers
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