Why STO And PBH Are In News Today?

In recent business news, Australian energy company Santos Limited (ASX: STO) has reached an agreement with Kumul Petroleum Holdings Limited (Kumul) for the sale of a 2.6% stake in the PNG LNG project. The deal is valued at $576 million in cash, with Kumul also assuming $160 million of project finance debt. This strategic move is expected to bolster Santos' financial position and further strengthen its focus on core assets and growth opportunities.

Source: Kapitales Research

Simultaneously, PointsBet Holdings Limited (ASX: PBH), a leading global online sports betting and gaming company, has successfully completed the sale of its US business to Fanatics Betting and Gaming. The transaction, valued at $175 million, involves the transfer of operating businesses in eight states. This move represents a significant step for PointsBet, as it aims to enhance its revenue and earnings growth while streamlining its operations.

According to recent news, Santos, an energy company, has reached a significant agreement with Kumul Petroleum Holdings Limited (Kumul) regarding the PNG LNG project. Kumul will acquire a 2.6% participating interest in PNG LNG for $576 million in cash and will also assume approximately $160 million of project finance debt. This deal is not dependent on financing and is subject to approval from the PNG competition regulator by December 31, 2023. Kumul has already deposited $80 million in escrow as part of the purchase consideration, with further payments to be made before completion.

Furthermore, Santos has granted Kumul a call option to purchase an additional 2.4% interest in PNG LNG for $524 million, subject to certain conditions. Santos CEO Kevin Gallagher and PNG Prime Minister James Marape have both expressed their satisfaction with the agreement, seeing it as a step toward greater equity in the development of PNG's natural resources.

On the other hand, PointsBet Holdings Limited (ASX: PBH) has made an announcement regarding the sale of its US business to Fanatics Betting and Gaming (FBG) for US$175 million. The transaction includes the transfer of operating businesses in eight states, and PointsBet will continue to provide services to FBG until the completion of the deal. The transaction is expected to bring significant revenue and earnings growth to PointsBet, with potential future capital returns to shareholders. The Subsequent Completion is scheduled for February 29, 2024, at which point FBG will acquire the remaining assets of PointsBet's US business and European assets.

Both Santos and PointsBet are set to benefit from these transactions, which mark pivotal moments in their respective journeys. Let's delve deeper into the details of these deals and understand their potential impact on the companies involved.

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