Oil Search not proceeding with InterOil takeover

Company News

by David Chau

Oil Search Ltd (ASX:OSH) says it intends to not proceed with its take-over of InterOil Corporation.

Oil Search’s decision to not submit a revised offer came after InterOil said it received a “Superior Proposal” from Exxon Moil Corporation. And therefore, InterOil intended to enter into an Arrangement Agreement with ExxonMobil instead.

If InterOil does terminate its existing Arrangement Agreement with Oil Search, Oil Search will receive a $60 million USD break free, which will more than cover the costs associated with the offer.

Oil Search reported a net loss of $54 million at 31 December 2015.

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