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.
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)
