In a letter to QGC shareholders, Santos chairman Stephen Gerlach reiterated that his company’s cash offer valued the coal seam methane producer at $1.26 per share – a 24% premium to QGC’s closing share price of $1.02 on October 3, the day before Santos made its move.

However, QGC’s share price has soared and still remains well above the offer price, opening this morning at $1.43.5.

Gerlach said Santos’ offer recognised both the efforts of QGC management in building the business, as well as its future upside.

“Our proposed acquisition of QGC complements our existing coal seam gas assets at Fairview and Scotia and builds upon Santos’ long history of operating in Queensland and our commitment to the state,” he said.

“Accordingly, as outlined in the bidder’s statement, Santos is offering QGC shareholders a fair and attractive price, which reflects QGC’s upside potential.”