Seeking Alpha

Statoil said to examine deals as government loosens control

  • Statoil (STO -0.5%) is studying overseas acquisitions that would allow it to diversify away from Norway and perhaps vault it toward supermajor status among global oil producers, Bloomberg reports.
  • Analysts say STO could unlock billions for a large-scale international acquisition if the Norwegian state were to go ahead with proposals to reduce its current 67% holding in the company.
  • Diluting the government stake to 51% could allow the issuance of more than $22B in new shares for use in a takeover, at current prices, the report says; STO also has the lowest ratio of net debt to EBITDA among integrated European energy producers, providing plenty of financing room.
Comments (1)
  • Chancer
    , contributor
    Comments (3386) | Send Message
     
    But Norwegian government will still control 51% and STO will still pay higher taxes than their peers.
    Considering STO's success in exploration, they should be selling for 50% more now as they are discounted about 1/3 from their peers due to higher taxes and government ownership.
    10 Jan 2014, 01:43 PM Reply Like
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