Hony share grab lifts Santos shares
Santos shares surged after former shareholder Hony Capital claimed 2.25pc of its stock at a substantial premium.
Santos shares have surged more than 6 per cent after the company reported former significant shareholder Hony Capital had claimed 2.25 per cent of its stock at a substantial premium.
The deal sees Hony, the Chinese private equiry firm, grab control of 40 million shares at $3.98 a share, 11 per cent above where Santos traded before the transaction was made last night.
Santos (STO) shares closed 6.42 per cent stronger, at $3.81, amid a broader rally in the materials sector.
“Santos has made inquiries with Hony Capital this morning who have confirmed that they were successful in acquiring an additional 40 million shares in Santos, increasing their interest in the company to approximately 3.2 per cent,” Santos said in a brief statement.
The trading activity comes eight months after Hony sold the majority of its holding to Chinese billionaire Wang Yusuo.
The private equity group first acquired a 7.9 per cent stake in Santos in November last year as it provided a much needed cash injection to the then struggling energy group.
It then expanded its holding through online purchases before offloading 11.7 per cent to Mr Wang in March.