Hancock joins Posco in $850m Senex bid

Brisbane-headquartered Senex Energy has recommended shareholders back South Korean steel manufacturer Posco’s $852 million takeover offer, with Gina Rinehart's Hancock Energy potentially investing.

Oil and gas operator Senex told the ASX this morning it had received another improved non-binding proposal from Posco to acquire 100 per cent of Senex for $4.601 per share and pay a dividend of up to 5 cents per share for the half year ending December 31, 2021.

The offer was the fourth submitted by the company in the past three months, with Posco having previously submitted non-binding proposals of $4, $4.20, and $4.40 per share between July and September before announcing its latest offer in October.

Senex’s board has unanimously recommended shareholders vote in favour of the scheme, subject to negotiating an acceptable implementation agreement and no superior proposal being submitted.

The plan will also be subject to shareholder, court, and South Korean regulatory approvals.

Senex has natural gas operations in two of Australia's onshore energy regions, Queensland’s Surat Basin and the Cooper Basin.

The company's Atlas operation supplies gas to CSR Building Products, Orora, Visy Glass, Alinta Energy, CleanCo Queensland and Southern Oil Refining.

Posco also informed Senex of a potential partnership with Hancock Energy, should the scheme be successful. 

The 53-year-old multinational steelmaking company, currently ranked among the world's largest, holds a suite of oil and gas projects.

But it has been a major investor in the state’s minerals sector, holding a minority investment in Hancock’s Roy Hill iron ore project and a 30 per cent stake in First Quantum Minerals’ Ravensthorpe nickel mine.

Hancock Energy reportedly approached Posco about the prospect of a partnership after Posco’s takeover plan became public.