MADRID (Reuters) – Repsol announced Tuesday that its board gave the green light to the purchase of Talisman by 13,000 million dollars (10,460 million euros), recommended by the board of the Canadian oil operation will boost the production of the Spanish firm.
In a statement to the local stock supervisor, Repsol said it will launch a bid for 100 percent of the shares of Canadian oil totaling 8,300 million ( $ 8 per share), while assume a debt estimated at 4,700 billion at end-September.
The $ eight Canadian action entails a premium of 56 percent on closing Monday and 24 percent on the average price of the last three months.
The offer, unanimously approved and recommended by the board of Talisman, primarily financed with cash obtained with the expropriation of YPF and give you the boost it needed its exploration and production division after his forced departure from Argentina in 2012.
With the acquisition of Talisman, Repsol production will jump 76 percent to 680,000 boe oil per day (boepd), while the volume of reserves rise by 55 percent to 2.300 million boepd.
In addition, significantly alter the geographic mix of the group since the weight of North America will almost half of capital employed in “upstream” (previously 30 percent) while Latin America will drop to 22 percent from 50 percent.
“The Canadian company provides knowledge in key geographic areas and in specialties that will benefit the future development of the Group, including offshore production and development of unconventional assets, “said Repsol.
Repsol get to purchase assets in Canada, United States, Southeast Asia (Indonesia , Malaysia and Vietnam) as well as in Colombia, Norway and the United Kingdom, being present in over 50 countries with a global workforce of over 27,000 employees.
Repsol expects to close the transaction in the middle of next year, after obtaining the necessary authorizations and consent of the shareholders of Talisman (before next February 19) and Canadian partners in certain assets .
In a presentation, the group chaired by Antonio Brufau said the purchase will have a positive effect on earnings per share of Repsol since 2017, while for cash flow positive impact will be immediate and estimated annual synergies (cost and operational) 220 million a year.
Repsol said that as part of the transaction proposed purchase of all preferred shares of Talisman for 25 Canadian dollars per share.
The Spanish was advised in the negotiations by JP Morgan and Bennett Jones, while Talisman advisers were Goldman Sachs and Nomura
(Reporting by Jose Elias Rodriguez, edited by Carlos Aliaga via Mesa Santiago).
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