Seeking Alpha

Sheikh's debt deal for Exxon LNG stake may prompt offers

  • A convertible debt deal struck during the 2008 financial crisis led by a billionaire sheikh may be set to trigger a contest for a piece of the $19B natural gas export terminal Exxon Mobil (XOM) is building in Papua New Guinea, Bloomberg reports.
  • Sheikh Mansour of Abu Dhabi is due to oversee a swap of that debt for a 14.7% stake in Oil Search (OIS), owner of almost a third of the project; the March conversion date is sparking speculation that producers including XOM may also seek the holding.
  • The sheikh's ownership of the stake could see a speculative premium develop in the OIS share price with a potential acquirer targeting the holding as a cornerstone ahead of a bid, some analysts say.
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Comments (1)
  • JohnMac2002
    , contributor
    Comments (16) | Send Message
    There is some clarification required on this release. The company Oil Search is listed on the ASX under ticker symbol OSH, and is a major participant in the PNG LNG project. This OIS symbol shown above is Oil States International listed on the NYSE, which to my knowledge has no participation in the PNG LNG development.
    10 Nov 2013, 10:10 PM Reply Like
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