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Oil producer undertakes multi-billion dollar capital raising

Oil producer undertakes multi-billion dollar capital raising


A large oil and gas producer in the Asia-Pacific region has raised capital through a rights issue.

Firms: King & Wood Mallesons (joint lead managers, Hony Capital, Mitsui E&P Australia); Herbert Smith Freehills (Santos Limited); Skadden, Arps, Slate, Meagher & Flom LLP (joint lead managers)

Deal: Santos was involved in a capital raising initiative.

Value: $3.5 billion

Area: M&A

Key players: The KWM team advised on three distinct initiatives; a new equity raising, private placement and sale stake.

One KWM team was led by M&A partner Shannon Finch, who was supported by senior associates Amanda Isouard and Hoda Nahlous and solicitor Robert Garritano.

This team advised the joint lead managers (Citigroup Global Markets Australia Pty Limited, Deutsche Bank AG, Sydney Branch and UBS AG, Australia Branch) on a $2.5 billion offer. 

Partner Shaun McRobert also led a team of lawyers across Perth, Singapore and China advising an affiliate of China-based international private equity firm, Hony Capital on their $500m investment in Santos via a private placement.

Partner Rob Edel and special counsel Ian Gordon led a team across Perth and Melbourne advising Mitsui E&P Australia on its purchase of a 35 per cent stake in the Kipper gas field for $520m.

Deal significance: Oil and gas producer Santos Limited has made a pro rata accelerated renounceable entitlement offer (with retail rights trading) (PAITREO) of new ordinary shares to existing shareholders valued at $2.5 billion. Taking into account Santos' deals with Hony Capital and Mitsui E&P Australia, this brings the total value of the transaction to $3.5 billion.

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