06-22-2012, 04:06 AM
Rumor was floating that a Chinese national oil company might be looking to buy OSH. But thanks to A Somare's great deal with IPIC no can do until 2014 at least. Tiger prowling the grass of the lowlands and probably no signee CA. How hungry is the Tiger? Hungry enough to eat Zebra? Hohohoho
"Blair Price
Wednesday, 20 June 2012
A Sydney-based Royal Bank of Scotland analyst reportedly believes Oil Search may be subject to a takeover play, especially from a Chinese buyer. However, a successful takeover bid for Oil Search does not seem possible until at least 2014.
“We see a distinct possibility that a cashed-up Chinese major could take a swing at Oil Search,” RBS analyst Philipp Kin recently said according to Bloomberg.
“PNG has vast potential for more gas and oil discoveries.”
While there is plenty of upstream opportunity in PNG, any attempt to take over Oil Search this year would be fraught with complications.
The PNG government is a significant stakeholder of Oil Search and has already used the shareholding to secure finance to meet its share of ongoing development costs for the $US15.7 billion PNG LNG project.
Back in 2008, state-owned Independent Public Business Corporation used the government’s 17.56% stake of Oil Search to land $A1.68 billion of upfront funds from Abu Dhabi government-owned International Petroleum Investment Corporation.
In exchange, IPBC agreed to transfer its 196.6 million Oil Search shares to IPIC in early 2014.
The deal was based on a target of Oil Search shares reaching $8.55 each by the time IPBC transferred them to IPIC. Importantly, any shortfall in the value would be paid by IPBC to IPIC.
Given this background, a friendly takeover bid for Oil Search would require Abu Dhabi government approval along with PNG government approval.
A hostile takeover attempt would need to capture at least a 90% stake of Oil Search shares to trigger a compulsory acquisition of the remaining shares.
But hitting that level is not possible for some time yet as more than 10% of Oil Search shares are awaiting transfer to IPIC in early 2014."
http://www.pngindustrynews.net/storyview.asp?storyid=8685644§ionsource=s0
"Blair Price
Wednesday, 20 June 2012
A Sydney-based Royal Bank of Scotland analyst reportedly believes Oil Search may be subject to a takeover play, especially from a Chinese buyer. However, a successful takeover bid for Oil Search does not seem possible until at least 2014.
“We see a distinct possibility that a cashed-up Chinese major could take a swing at Oil Search,” RBS analyst Philipp Kin recently said according to Bloomberg.
“PNG has vast potential for more gas and oil discoveries.”
While there is plenty of upstream opportunity in PNG, any attempt to take over Oil Search this year would be fraught with complications.
The PNG government is a significant stakeholder of Oil Search and has already used the shareholding to secure finance to meet its share of ongoing development costs for the $US15.7 billion PNG LNG project.
Back in 2008, state-owned Independent Public Business Corporation used the government’s 17.56% stake of Oil Search to land $A1.68 billion of upfront funds from Abu Dhabi government-owned International Petroleum Investment Corporation.
In exchange, IPBC agreed to transfer its 196.6 million Oil Search shares to IPIC in early 2014.
The deal was based on a target of Oil Search shares reaching $8.55 each by the time IPBC transferred them to IPIC. Importantly, any shortfall in the value would be paid by IPBC to IPIC.
Given this background, a friendly takeover bid for Oil Search would require Abu Dhabi government approval along with PNG government approval.
A hostile takeover attempt would need to capture at least a 90% stake of Oil Search shares to trigger a compulsory acquisition of the remaining shares.
But hitting that level is not possible for some time yet as more than 10% of Oil Search shares are awaiting transfer to IPIC in early 2014."
http://www.pngindustrynews.net/storyview.asp?storyid=8685644§ionsource=s0
