Aker ASA: Aker BP acquires Hess Norge
Reference is made to Aker BP ASA's ("Aker BP") stock exchange announcement today regarding the agreement to acquire Hess Norge AS ("Hess Norway").
Aker BP has entered into an agreement to acquire Hess Norway. The transaction includes Hess Norway's 64.05 per cent share of the Valhall field, its 62.5 per cent share of the Hod field and a tax loss carry forward with an after-tax value of USD 1.5 billion (as booked in Hess Norway's 2016 annual accounts).
"With the acquisition of Hess Norway, Aker BP continues to deliver on its growth strategy on the Norwegian Continental Shelf. The transaction fits well with the company's investment criteria and through the acquisition of producing assets, Aker BP increases its dividend capacity and will raise the dividend level to USD 350 million per year with first uplift planned for the fourth quarter of 2017," said Aker's President and CEO, and Aker BP's Chairman, Øyvind Eriksen.
The total cash consideration of the transaction is USD 2.0 billion, and Aker BP will finance the transaction through its existing Reserve Based Lending bank facility and by the issuance of USD 500 million in new equity.
Aker ASA ("Aker") and BP Plc ("BP") will subscribe for 40 per cent and 30 per cent of the shares to be issued, respectively, at a price determined through a bookbuilding process, or minimum NOK 155 per share. The remaining shares to be issued will be fully underwritten by Aker and BP at NOK 155 per share.
"Aker and BP as strategic owners remain committed to the plan of growing Aker BP into a leading E&P company, and both companies will subscribe for its respective ownership stakes in the proposed equity issue. This equity issue will also strengthen Aker BP's position for further growth," Eriksen said.
Aker's cash payment for the settlement of the new shares to be issued will be financed with existing credit facilities and cash.
The full stock exchange notice on the transaction can be downloaded from Aker BP's web page www.akerbp.com
For further information, please contact:
Per Kristian Reppe, Head of Investor Relations
Phone: +47 24 13 00 67
Mobile: +47 90 03 32 03
Atle Kigen, Head of Corporate Communications
Phone: +47 24 13 00 08
Mobile: +47 90 78 48 78
This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.