Oil Search said it had received a non-binding indicitive proposal from Woodside which would see it offer one of its shares for every four Oil Search shares.
The proposed deal would value Oil Search's shares A$7.64 each, based on Woodside's closing price of A$30.58 per share on Monday, which is a 13.5% premium to Oil Search's last close of A$6.73 per share.
Woodside confirmed the offer on Tuesday but noted that there was no certainty the discussions would lead to a binding offer.
“The proposal is subject to Papua New Guinea regulatory approval, completing satisfactory due diligence and other customary conditions,” Woodside said in a statement to the Australia Securities Exchange.
“The proposal is consistent with Woodside’s strategy of delivering superior shareholder returns by...
