ENN and Hony are associated shareholders of Santos, with an aggregate relevant interest of 15.1% of Santos shares. This new strategic relationship will become effective and remain in effect as long as ENN and Hony have a relevant interest in 15% or more in Santos shares.
Santos claims that the strategic relationship is based on mutual cooperation and assistance in order to support Santos’ growth. It is the intention of ENN and Hony that Santos will be the main investment vehicle for material investment by them in upstream gas reserves and LNG production in Australia and Papua New Guinea. ENN and Hony will support future investment by Santos, and Santos will use reasonable endeavours to include ENN and Hony in investment opportunities where it is in the best interests of Santos shareholders overall.
The Chairman of Santos, Peter Coates, said: “Santos welcomes the formalisation of a strategic relationship with Hony and ENN. Hony became a major shareholder in 2015 and together with ENN has continued to support Santos through challenging times. We look forward to a closer relationship with Hony and ENN and their support for the continued growth of Santos for the benefit of all shareholders.”
The Founder of ENN, Chairman Wang, said: “ENN and Hony strongly support the new growth strategy of Santos under the leadership of CEO Kevin Gallagher and the Santos Board. The strategic relationship will effectively link up the upstream E&P competence of Santos with China's fast growing downstream market of natural gas, and explore many opportunities for Santos to realise its full potential as a leading producer of gas and LNG.”
As part of the strategic relationship, Eugene Shi will join the board as a non-executive director. He is currently Vice President ENN Ecological Holdings Ltd, and has over 20 years of experience in capital markets, M&A, strategy and business development.
Santos claims that the agreement will end if ENN and Hony cease to have a relevant interest in at least 15% of Santos shares. In addition to this, Santos, ENN or Hony may terminate the agreement 12 months after ENN ceases to have any nominee Director on the Santos board.
Read the article online at: https://www.lngindustry.com/liquefaction/27062017/santos-forms-strategic-relationship-with-enn-and-hony/