Oil Search shareholders approve merger deal with Santos

Papua New Guinea-focused Oil Search said on Tuesday its shareholders have voted to approve the proposed merger deal with Australian LNG firm Santos.

About 95.1 percent of Oil Search shareholders voted in favor of the deal worth about $6.2 billion, according to a statement by Oil Search.

The proposed merger has this week won an approval from the PNG Securities Commission as well.

However, it remains subject to approval from PNG’s National Court of Justice. If the court approves the deal, Oil Search expects that the scheme would become legally effective on
Friday.

“If this occurs, Oil Search will apply for its shares to be suspended from trading on the PNGX and ASX with effect from the close of trade on Friday, December 10,” it said.

In September, Oil Search and Santos have entered into a definitive merger deal that would create an LNG player worth about A$21 billion ($15.5 billion).

Following the completion of the scheme, Oil Search shareholders would own about 38.5 percent of the merged group and Santos shareholders would own 61.5 percent.

Oil Search has a stake in the ExxonMobil-led PNG LNG project but also the planned Papua LNG development.

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