Oil Search (ASX:OSH) share price edges higher on merger update

We take a look at what the oil and gas company announced today?
The post Oil Search (ASX:OSH) share price edges higher on merger update appeared first on The Motley Fool Australia. –

The Oil Search Ltd (ASX: OSH) share price is pushing upwards today following a positive update by the energy producer.

At the time of writing, Oil Search shares are up 0.76% to $3.97 apiece. In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 0.28% to 7,220.7 points.

What did Oil Search announce?

In today’s statement, Oil Search advised that it has received approval from the Papua New Guinea Securities Commission regarding its merger with Santos Ltd (ASX: STO).

This is just one of the conditions of the merger implementation deed that needed to be satisfied.

However, there are still a few hurdles to overcome. This includes clearance from the Independent Consumer and Competition Commission of Papua New Guinea as well as approval by Oil Search shareholders at the scheme meeting to be held tomorrow.

The Oil Search board unanimously recommends that its shareholders vote in favour of the scheme in the absence of a superior proposal.

In addition, other court approvals and the satisfaction or waivers of certain other customary conditions is required.

Both Oil Search and Santos are hoping to create the largest oil and gas company listed on the ASX. In essence, this would give the super-company a diversified portfolio of long-life and low-cost assets with significant growth options.

The offer consists of Oil Search shareholders receiving 0.6275 new Santos shares for each Oil Search share held. Upon completion, this would give Oil Search shareholders a 38.5% stake in the newly merged entity. Santos shareholders will retain the remaining 61.5% interest.

Oil Search share price summary

Since this time last year, Oil Search shares have gained more than 5%, with year-to-date growth hovering just under 7%. The company’s share price has moved sideways for most of 2021, amid uncertainty in the global economic recovery.

Based on today’s price, Oil Search commands a market capitalisation of roughly $8.2 billion, and has 2 billion shares outstanding.

The post Oil Search (ASX:OSH) share price edges higher on merger update appeared first on The Motley Fool Australia.

Should you invest $1,000 in Oil Search right now?

Before you consider Oil Search, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Oil Search wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

5 things to watch on the ASX 200 on Thursday

Own Santos (ASX:STO) shares? Here’s why the company could be in for some good news this week

Could this make an Oil Search (ASX:OSH) merger even better value for Santos?

ASX energy shares on watch after Omicron sparks oil price crash

Santos (ASX:STO) share price dips despite progress on $21 billion merger

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. 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.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!