Abu Dhabi National Oil Company (Adnoc) is reportedly in talks to secure more than US$10 billion (RM42.24 billion) in debt financing from both local and international banks to support its planned US$19 billion acquisition of Australian energy producer Santos Ltd, Bloomberg reported, citing people familiar with the matter.
According to the sources, JPMorgan Chase & Co is leading the financing package and also advising the Adnoc-led consortium on the deal. Negotiations between Adnoc and Santos are said to be moving forward as both parties aim to finalise a binding agreement by September 19, when the current exclusivity period expires.
The bid is spearheaded by Adnoc’s investment arm, XRG PJSC, alongside Abu Dhabi Development Holding Co and US-based Carlyle Group Inc. The consortium’s US$18.7 billion offer, unveiled in June, would give Adnoc a stronger foothold in the fast-growing liquefied natural gas (LNG) sector, putting it in line with rivals such as Saudi Aramco.
The group is currently working through due diligence, regulatory engagement, and internal approvals. However, sources cautioned that details of the financing package, including its size, could still change as discussions continue. Neither the consortium nor JPMorgan provided comments, while Santos has yet to respond to requests outside business hours.
Santos extended the exclusivity period for a second time last month to allow the consortium additional time to complete due diligence and secure necessary approvals. The company also recently reported better-than-expected earnings.
Santos’ board has endorsed Adnoc’s cash offer of US$5.76 per share. Chief executive officer Kevin Gallagher had previously turned away multiple takeover approaches, sparking criticism from investors.
Shares of Santos closed 0.6% lower at A$7.80 on Friday, though they have risen about 17% this year, valuing the firm at A$25.3 billion (US$16.6 billion or RM70.15 billion).
