China's ENN to 'consider' Harbour Energy's takeover offer for Australia's Santos

A sign for Santos Ltd, Australia's No. 2 independent gas producer, is displayed on the front of the company's office building in the rural township of Gunnedah, located in north-western New South Wales in Australia, March 9, 2018. REUTERS/David Gray

BEIJING (Reuters) - China's ENN Ecological Holdings Co. Ltd <600803.SS>, the largest stakeholder in Australian gas producer Santos Ltd <STO.AX>, said it will "cautiously study and consider" a takeover offer from U.S. firm Harbour Energy.

* The Shanghai-listed company said it hopes to maintain along-term strategic relationship with Santos and has no plan tooffload its shares for cash, the Chinese firm said in a stockfiling on April 4. * China was closed April 5-7 for the Tomb Sweeping Festivalholiday. * ENN said it would continue to indirectly invest in Santosvia a special-purpose vehicle. * The company's board has authorized Santos' management toconduct relevant negotiations and consultations with HarbourEnergy regarding the takeover bid. * Santos said last week it would "engage with" HarbourEnergy after receiving a $10.4 billion takeover offer from theU.S. company, its fourth unsolicited bid since August 2017. * Under Harbour's offer, ENN and Chinese private equity firmHony Capital will be allowed to retain a stake of up to 20percent.

(Reporting by Chen Aizhu; Editing by Biju Dwarakanath)