Santos moves to complete entitlement

Oil and gas company Santos will move to sell $585 million in entitlements after a shortfall in the offer's retail uptake.

Santos will tap investors for around $585 million to meet a shortfall in its $2.5 billion rights entitlement offer.

Santos on Wednesday revealed only 57 per cent of the $1.33 billion rights issue entitlements for retail investors was taken up.

The energy giant had raised $1.17 billion from institutional investors in November.

At the time, Santos announced plans to raise $3.5 billion through share and asset sales following a strategic review that was launched after it suffered an 82 per cent dive in first half profit.

Santos was offering shares under the 1-for-1.7 rights offer at $3.85 each.

Executive chairman Peter Coates on Wednesday said he was pleased with the uptake of the retail offer, despite the shortfall and sliding oil prices.

"The results of the retail and institutional entitlement offers demonstrate recognition from shareholders of the long term value in Santos and their support for the initiatives the company has taken to substantially strengthen its balance sheet," he said.

Santos hopes to complete the sale of the remaining shares available from the retail entitlement by Thursday morning.

The company's shares have halved in value since May amid soft commodity prices.

They last traded at $4.06 each.


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Source: AAP



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