Photo by: Bloombeg
PERTH (miningweekly.com) – Australian oil and gas major Santos has successfully completed the retail component of its entitlement offer, raising A$775-million.
The retail entitlement offer was the second stage of the company’s plans to raise A$2.5-billion in equity, with the institutional component of the entitlement offer closing earlier, and raising A$1.17-billion.
The ASX-listed company said on Wednesday that some 57% of the available retail entitlements had been taken up under the retail entitlement offer, with some 152-million retail entitlements now on offer under the retail shortfall bookbuild.
The retail shortfall bookbuild would be completed by December 3.
Chairperson Peter Coates said that he was pleased with the support that the company had received from its retail shareholders, despite the difficult oil price environment.
“The results of the retail and institutional entitlement offer demonstrates recognition from shareholders of the long-term value in Santos and their support for the initiatives the company has taken to substantially strengthen its balance sheet."
Santos has previously announced plans to reduce its debt by about A$3.5-billion, including the A$520-million sale of its interest in the Kipper gasfield, offshore Victoria.