Woodside has informed the Oil Search Board that it has withdrawn its proposal to merge the businesses.
On 3 September 2015, Woodside provided Oil Search with a proposal to merge the two companies through a scheme of arrangement. Later that month, the Board of Oil Search unanimously rejected the approach from Woodside to acquire all the shares in Oil Search for a consideration of one Woodside share for every four Oil Search shares held. A statement from Oil Search at the time read: “The proposal would significantly alter the fundamental characteristic of an investment in the company and dilute the present growth profile available to its shareholders.”
Responding to the rejection, Woodside said that it was surprised and disappointed: “Woodside believes the proposal would create the regional oil and gas champion for both Papua New Guinea and Australia with a global portfolio of world class assets and development opportunities which would deliver significant benefits to both companies' shareholders.”
Edited from various sources by Callum O'Reilly