Santos continues to draw the spotlight in the wake of last week’s bid for Oil Search, with expectations firming of significant asset sales before Christmas.
Elsewhere, Oil Search dodges a meeting with Woodside execs, the field of suitors for ANZ’s Esanda assets widens once again and Stockland mulls a major shake-up of its business.
Santos’ plans for asset sales remain a major talking point amid M&A activity in the energy sector. The beleaguered group’s stock has been boosted by the valuation ascribed to Oil Search, with speculation emerging Total is running the numbers on a bid for either the entire business or key assets.
While takeover rumours have been circling around Santos for much of the year, the energy firm is focused on reducing its debt load with a source telling The Australian a slice of its 13.5 per cent in the giant PNG LNG project may be on the table. It is believed France’s Total, or perhaps another global oil behemoth, is already in advanced discussions over the $6.6 billion stake.
The action comes as Oil Search, which holds a larger slice (29 per cent) of the PNG LNG project than Santos, prepares to snub an $11.7bn takeover offer from Woodside Petroleum. The suitor has said planned Sunday talks over the deal were called off by Oil Search, leading to expectations the target will confirm its rejection of the proposal as early as today.
Meanwhile, the two-horse race for ANZ’s Esanda Dealer Finance business has been expanded to three as Pepper Group looks to build a rival consortium to frontrunning Macquarie Group and HNA Group. The Australian Financial Review reports that Pepper has committed to a formal offer as final bids fall due this week.
Macquarie remains the favourite should it secure ACCC approval, with price estimates coming in at $1.5bn.
A similar-sized deal is in the works at Swisse Wellness as its founders and management team haggle to retain a significant stake despite a likely trade sale. The AFR reports a deal is expected next month, with two Chinese firms and private equity giant KKR leading a shortlist of suitors.
In property, Stockland may spin off its $1.1bn retirement division into a separate wholesale fund. Super funds and sovereign wealth funds could take a piece of it via a trust structure, with the ASX-listed Stockland seen keen to take advantage of improved sentiment in the sector.
In the IPO market, an investor roadshow is imminent at Integral Diagnostics with an October bookbuild for the radiology group likely to secure a valuation around $500 million.
Elsewhere, Coles is struggling to convince the competition watchdog on the planned takeover of nine Supabarn stores in NSW and the ACT. The ACCC has detailed concerns on the impact on consumer choice and has reserved a final decision on the deal until November 26.
Finally, Pacific Equity Partners has confirmed the purchase of honey producer Manuka Health at a price likely around $100m, Quadrant Private Equity could soon head for the exit at APN Outdoor as an escrow period lapses this week, while Commonwealth Bank has raised just $1.5bn in a retail entitlement offer, well short of plans to raise $3bn though the deal is fully underwritten.