Santos Ltd T.STO

Primary Symbol: STOSF

Energy Oil & Gas Integrated

Santos Limited is focused on three regional business unit, including Cooper Basin, Queensland and New South Wales (NSW) and (PNG), now form the Eastern Australia and PNG Business Unit, Northern Australia and Timor-Leste, and Western Australia now form the Western Australia, Northern Australia and Timor-Leste Business Unit and Alaska is the third regional Business Unit. Supporting these three business units are two functional divisions: Santos Energy Solutions and Upstream Gas and Liquids. The Cooper Basin produces natural gas, gas liquids and crude oil. Gas is sold primarily to domestic retailers, industry and for the production of liquefied natural gas, while gas liquids and crude oil are sold in domestic and export markets. Its GLNG project in Queensland produces liquefied natural gas (LNG) for export to global markets from the LNG plant at Gladstone and is also sold to the domestic market. Northern Australia and Timor-Leste is centered on the Bayu-Undan/Darwin LNG (DLNG) project.

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Santos Ltd

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Post by nijinsky70on Dec 11, 2012 8:45pm

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Post# 20716415

How's this calculated, anyone?

I'm puzzled by the reference to this $0.43 incremental SP. Anyone knows how that's calculated?

Transaction Summary

Pursuant to the Offer, Spartan shareholders will receive consideration of 0.1169 Bonterra Shares for each Spartan Share held (the "Exchange Ratio"). Based on Bonterra's 30-day average closing price of $43.05, the implied price per Spartan Share is $5.03.

As a part of the Arrangement, Bonterra has committed, subject to the execution of the definitive agreement and completion of the Arrangement, to increase its monthly dividend to $0.28 from $0.26 beginning March 2013. Subject to the transaction closing prior to February 15, 2013, Spartan shareholders will also receive a $0.26 per Bonterra share dividend on February 28, 2013. If Bonterra sustains its current effective yield of 7.2% following the dividend increase, Spartan shareholders can potentially realize an incremental $0.43 of value per Spartan Share. This amount, combined with the above share consideration, represents a 28% premium over the implied value of Spartan's share price of $4.27 (as calculated by using the previous bidder's closing price as at December 7, 2012 and the previous bidder's proposed exchange ratio).

Based on the Exchange Ratio, it is currently anticipated that Bonterra will issue approximately 10.7 million Bonterra Shares to the holders of Spartan Shares.