Santos Limited (ASX: STO), an Australian energy company engaged in the exploration, development, production, and marketing of hydrocarbons, has provided an update regarding the non-binding indicative proposal from the XRG Consortium led by Abu Dhabi National Oil Company subsidiary XRG P.J.S.C. to acquire 100% of Santos’ issued shares. On August 11, Santos announced that the XRG Consortium had substantially completed due diligence and reaffirmed its commitment to a binding transaction, leading to an extension of the exclusivity period to August 22, 2025.
Santos and the XRG Consortium have continued collaborative discussions, including negotiations on the terms of a binding scheme implementation agreement (SIA). However, an agreement on acceptable terms has not yet been reached. This week, the XRG Consortium informed Santos that even with agreed terms and completed due diligence, it cannot sign a binding SIA due to pending final approvals, expected to take approximately four weeks on an expedited basis.
Consequently, Santos anticipates that a binding SIA will not be reached by the exclusivity period’s expiration on Friday, August 22, 2025. Despite this, discussions with the XRG Consortium are ongoing. Santos has advised shareholders that no action is required at this time and has stressed that there is no certainty that the XRG Consortium will enter into a binding SIA or that the potential transaction will proceed. The company will continue to keep shareholders informed.
Furthermore, Santos has announced that the release of its half-year results for the period ended June 30, 2025, will be deferred to Monday, August 25, 2025. This delay aligns with the conclusion of the XRG Consortium’s exclusivity period. The half-year results announcement will include a further update on the discussions with the XRG Consortium.
