Gulf Oil and Gas accountACCOUNT

Papua New Guinea Government to Sell Stake in Oil Search

Source: Reuters 9/21/2017, Location: Asia

The cash-strapped government of Papua New Guinea (PNG), looking to pay off nearly $1 billion in debt, is selling its stake in Oil Search Ltd , three people familiar with the transaction said on Thursday.

UBS and JP Morgan will sell 31.3 million shares of Oil Search owned by the PNG government, with a floor price of A$6.55 a share, UBS head of equity capital markets Richard Sleijpen told Reuters.

Sleijpen said the sale would facilitate the exit of the PNG government from Oil Search.

The sale price represents a small discount to Oil Search’s last trade of A$6.81. At Thursday’s close, the government’s 9.8 percent stake in the company was worth A$1.02 billion ($812 million).

The PNG government acquired 149 million shares in Oil Search in 2014 when the company sold new stock at A$8.20 apiece to help it buy stakes in PNG’s biggest undeveloped gas fields, Elk and Antelope.

The government had to borrow A$1.2 billion from UBS to fund the deal in 2014, which was later refinanced with UBS and JP Morgan.

The banks held the government’s shares as security over the loan and had gradually sold them down as a hedge as Oil Search’s share price fell over the past few years, a person familiar with the transactions said.

The banks would have had to buy back those shares to give to the government had PNG paid back the loan.

Instead, the remaining 31.3 million shares are being sold, extinguishing the debt, said the person, who declined to be named as the loan terms were confidential. ($1 = 1.2563 Australian dollars)

Mergers and Acquisitions News in Papua-New Guinea >>

Oman >>  6/10/2019 - SAJ Investment Company announced its acquisition of a controlling stake in HEMA Energy Group at a singing ceremony between the two parties. ...
Russia >>  6/7/2019 - A working meeting between Alexey Miller, Chairman of the Gazprom Management Committee, and Joe Kaeser, Chief Executive Officer of Siemens, took place ...

Russia >>  6/7/2019 - Gazprom Neft and ZYFRA have agreed to establish a joint venture to develop digital solutions for managing production at industrial enterprises. The pr...
China >>  6/6/2019 - NOVATEK, Sinopec and Gazprombank have signed a Heads of Agreement on establishing a joint venture to market LNG and natural gas to end-customers in t...

Russia >>  6/6/2019 - Gazprom Neft and NOVATEK have concluded an agreement at this year’s St Petersburg International Economic Forum confirming their intention to cooperate...
Russia >>  6/6/2019 - As part of today’s Saint-Petersburg International Economic Forum, PAO NOVATEK (“NOVATEK” and/or the “Company”) and PAO TMK (“TMK”) signed a Memorandum...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Papua-New Guinea Oil & Gas 1 >>  2 |

More News

Related Links

Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.