Oil Search Rejects Woodside Offer

Oil Search Limited on Monday said its Board has unanimously decided to reject Woodside’s $8 billion all share takeover proposal.

Last week Oil Search said Woodside proposed to acquire all of the shares in Oil Search for a consideration of one Woodside share for every four Oil Search shares held.

Commenting on the proposal, the Oil Search’s Chairman, Rick Lee said: “The Board of Oil Search believes our company is in a very strong position, both operationally and financially. We have a low cost, high quality, production base which is generating strong cash flows and excellent growth opportunities, with the proposed PNG LNG Train 3 and Papua LNG among the most competitive new developments in the world. Oil Search provides its shareholders with a pure exposure to PNG and is fully committed to PNG. Our focus is on continuing to build and create shareholder value through the Company’s strong future growth prospects.”

Following a detailed evaluation, the Oil Search Board has concluded that the proposal is highly opportunistic and grossly undervalues the company, the company said Monday.

“Oil Search is a pure PNG oil and gas play with clear growth opportunities and an excellent track record of delivery. The proposal would significantly alter the fundamental characteristic of an investment in the company and dilute the present growth profile available to its shareholders,” Oil Search said.