This energy share is shooting higher on Monday…
The post Senex (ASX:SXY) share price jumps 16% to multi-year high amid takeover talks appeared first on The Motley Fool Australia. –
The Senex Energy Ltd (ASX: SXY) share price has started the week with a bang.
In morning trade, the energy producer’s shares are up 16% to a multi-year high of $4.42.
This means the Senex share price is now up 75% since the start of the year.
Why is the Senex share price zooming higher?
The catalyst for the rise in the Senex share price on Monday has been news that the company is a takeover target.
This morning the company revealed that it is in discussions with Korean giant POSCO International Corporation in relation to a potential change of control transaction.
According to the release, on 2 September, POSCO submitted a revised non-binding and indicative proposal to acquire 100% of Senex for a cash offer price of $4.40 per share. This followed the submission of two prior non-binding proposals of $4.00 per share and $4.20 per share on 30 July and 27 August, respectively.
What’s the latest?
The Senex Board met and carefully considered the latest proposal and granted POSCO with a period of exclusivity to complete due diligence enquiries and further advance the proposal.
Following further discussions, Senex has agreed to extend POSCO’s exclusivity period out until 5 November. This is in order to provide POSCO with additional time to assess a further revised proposal at a price higher than $4.40 per share.
The release explains that POSCO has indicated that if a transaction proceeds, it is likely to be implemented by way of an off-market takeover offer. This would be subject to a 50.1% minimum acceptance condition and Foreign Investment Review Board approval.
Though, it has warned that there is no certainty that discussions between POSCO and Senex will result in a binding agreement. As such, Senex shareholders do not need to take any action at this time.
The Senex Board intends to update shareholders and the market in due course in accordance with its continuous disclosure obligations.
The post Senex (ASX:SXY) share price jumps 16% to multi-year high amid takeover talks appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboro 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.