BP Closes Det Norske, Aker Merger To Form New Entity
Zacks Investment Research | Oct 02, 2016 10:24PM ET
Oil giant BP plc (LON:BP) (NYSE:BP) has recently completed its earlier announced merger with Det norske oljeselskap and the latter’s shareholder, Aker ASA. The transaction has an effective date of Sep 30, 2016.
The merger led to the creation of a new entity – Aker BP ASA. It will combine the assets as well as expertise of both the companies’ Norwegian exploration and production operations. Per the terms of the proposed transaction, Aker BP will be operated independently. It will also be listed on the Oslo Stock Exchange.
As part of the deal, which was announced in Jun 2016, Det norske would issue 135.1 million shares based on NOK 80 per share to BP as compensation for all shares in BP Norge. This includes assets, a tax loss carry forward of $267 million and a net cash position of $178 million.
Shareholders of Aker BP will be current Det norske stakeholder Aker, other Det norske shareholders and BP, with 40%, 30% and 30%, respectively. BP is also entitled to collect a cash payment of $140 million and positive working capital adjustments as part of the transaction.
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