Santos Ltd said on Monday its largest shareholder had sold about a third of its stake worth A$785 million ($603.7 million) in the Australian gas producer.

Santos' biggest shareholder cuts stake by a third, remains top investor- oil and gas 360

Source: Reuters

Chinese energy company ENN Group sold about 107.1 million shares at A$7.33 per share, representing a 5.14% stake in Santos, the Australian firm said.

“ENN has advised Santos that it remains fully supportive of Santos’ strategy and future direction,” Santos said in a statement.

Although ENN remains Santos’ largest single shareholder with its remaining 9.97% stake, a 2017 agreement regarding board representation was rendered ineffective due to the sale.

As a result, ENN-nominated director Eugene Shi will resign from the board after the sale is completed, Santos said.

Last month, Santos reported a 60% plunge in annual underlying profit as energy markets over the period were battered by the COVID-19 pandemic.

ENN did not immediately respond to a request for comment.

($1 = 1.3004 Australian dollars)


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