Corporate M&A

ENN Group Reduces Stake in Santos

By Kunal Raj
March 08, 2021
a minute read
Kings Canyon Northern Territory Australia

ENN Group International Investment Ltd., a wholly-owned subsidiary of ENN Group Company Ltd., together with Great Multitude Ltd. and Xinneng (Hong Kong) Energy Investment Ltd. (collectively, the ENN Group) has divested approximately 107.1 million common shares of Santos Ltd., representing an 5.14% stake in the company, for aggregate sales proceeds of around A$785.2 million (approximately U$603.1 million). The shares were sold pursuant to two sale agreements that were oversubscribed, and received strong support from existing and new institutional shareholders.

Under the terms of the sale agreements, the ENN Group had engaged underwriters to sell 5 million, 100 million, and 2.12 million common shares of Santos, respectively, at a price of A$7.33 per share. Prior to the transactions, the ENN Group collectively and beneficially owned an approximately 15.11% stake in the company. Upon the completion of these deals, the group holds an approximately 9.97% stake in the company.

ASX-listed Santos is engaged in the development and production of natural gas assets in the Bonaparte, Browse, Cooper, and Carnarvon Basins in Australia, as well as in Timor-Leste and Papua New Guinea. Santos operates both as a domestic gas supplier and an exporter of LNG, and currently holds interests in major LNG projects including the Darwin LNG project in Northern Australia, the GLNG project in Queensland, and the PNG LNG project in Papua New Guinea.

Langfang, China-based ENN Group is owned and controlled by Chinese billionaire Wang Yusuo. The group has investments across the natural gas, energy trading, solar energy, chemicals, real estate, and healthcare businesses in China.

Morgan Stanley Australia Securities and UBS AG (Australia) acted as joint lead managers and underwriters to the ENN Group.

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