Australian gas producer Santos' shares fell as much as 13.6% on Thursday (September 18) after a consortium led by Abu Dhabi's ADNOC scrapped its $18.7 billion bid for the company, saying commercial terms could not be agreed.
Santos said in the statement early on Thursday it told the XRG consortium on Monday (September 15) it was willing to finalise a deal at $5.626 a share.
The original offer in June was made at $5.76 a share, worth A$8.89 at the time, but adjusted for Santos' recent dividend payment.
Santos shares dropped to A$6.61 in early trading Thursday, their lowest price since June 10 and headed for their worst day in more than five years. The benchmark S&P/ASX200 was down 0.9%.
XRG pulled the offer on Wednesday (September 17) and said "a combination of factors, when considered collectively, have impacted the Consortium's assessment of its indicative offer."
Taking into account net debt, the deal valued Santos at about A$36.4 billion ($24.2 billion), which would have made it the largest all-cash corporate buyout in Australian history, according to FactSet data.
The deal's collapse will now put pressure on Santos' board, given it was the third offer from a buyer in the past seven years not to proceed.
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