Gas Week

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Review of the 28 year-old law limiting individual share ownership in Santos to 15 per cent, worth $1.5 billion upwards, to Santos’s shareholdings

Posted by gasweek on 17 September, 2007

Mike Rann, Premier of South Australia, told the South Australia House of Assembly, 11 September 2007 that the review of the 28 year-old law limiting individual share ownership in Santos to 15 per cent was was initiated at the specific request of the company.”

Santos takeover risk: Rann said “The downside of any removal of the cap would, of course, be the potential for a takeover by interstate or overseas interests. So, while there would be a major benefit to Santos shareholders in the removal of the cap, there are also risks for South Australia that need to be addressed. Some people talk about it being worth $1.5 billion upwards to Santos’s shareholdings.”

Evil Empire: Rann said “The cap was introduced in 1979 to prevent a takeover by Alan Bond. Thank God that the Corcoran government had the foresight to see this corporate raider, who had yet to become a hero over the America’s Cup, long before he became publicly reviled around the world.”

Kept Cooper Basin under local control: Rann said “There were well founded concerns at the time about how the state’s interest in having a secure and continuous supply of gas might be compromised if control of Santos and the Cooper Basin, then the sole source of gas into South Australia, fell into the hands of such an individual as Alan Bond. The cap served South Australia well in this period.

SA now has new sources of gas: Nevertheless, South Australia today receives gas from a number of sources, and it is at the centre of a national gas hub, taking supply from Victoria through the SEAGAS pipeline and with plans to connect Moomba—Adelaide to the Queensland system.

Reference: M.D. Rann, Premier of South Australia, Minister for the Arts, House of Assembly, South Australia, 11 September 2007.

Erisk Net, 16/9/2007

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