Oil and gas company Santos (ASX:STO) has received a 100 per cent takeover offer from Harbour Energy.
Harbour has offered A$6.50 per share, which is a premium of 28 per cent to the last closing price of Santos.
The deal will be underwritten by JP Morgan and Morgan Stanley with the balance in equity from Harbour.
The Santos board considers that based on the offer price of A$6.50 per share it is in the interests of shareholders to engage further with Harbour.
Harbour Energy is an American oil and gas investor formed by investment Firm EIG, Harbour will now undertake due diligence before the deal can proceed further.
Shares in Santos (ASX:STO) closed 1.17 per cent lower to $5.07 on Thursday.