Australian gas producer Senex agrees takeover by Posco

Australian independent Senex said the majority of its shareholders have approved a takeover offer from South Korean steel producer Posco and its partner the privately owned Australian energy firm Hancock, which values the gas producer at A$960mn ($690mn).

Around 94pc of votes cast by Senex shareholders were in favour of the takeover offering A$4.60/share.

Senex largely produces for the domestic market through its Atlas and Roma North main producing fields in the onshore Queensland Surat basin.

Senex's main exposure to the LNG export market is through its supply agreement with the 7.8mn t/yr Gladstone LNG operated by Australian independent Santos.

Posco and Hancock originally said the reason for the deal was to gain exposure to the Australian natural gas market, including domestic gas sales and LNG exports.

By Kevin Morrison