Recently, ExxonMobil made a superior bid to Oil Search for the acquisition of InterOil. Oil Search was given a three-day window to amend its offer, but ultimately decided not to, claiming that it was not in the best interests of its shareholders. Now, InterOil has confirmed that an agreement has been reached with ExxonMobil.
ExxonMobil will acquire the company in a deal valued at over US$2.5 billion. ExxonMobil will acquire all of the company’s outstanding shares for a fee of US$45 per share, plus an additional cash payment based on the Elk-Antelope resource size.
The Chairman and Chief Executive of ExxonMobil, Rex W. Tillerson, said: “This agreement will enable ExxonMobil to create value for the shareholders of both companies and the people of Papua New Guinea.
“InterOil's resources will enhance ExxonMobil's already successful business in Papua New Guinea and bolster the company's strong position in liquefied natural gas."
The Chairman of InterOil, Chris Finlayson, added: “Our board of directors thoroughly reviewed the ExxonMobil transaction and concluded that it delivers superior value to InterOil shareholders. They will also benefit from their interest in ExxonMobil's diverse asset base and dividend stream."
Once the agreement has been concluded, ExxonMobil will be granted access to InterOil’s resource base, including interests in six licenses in Papua New Guinea covering approximately 4 million acres (including PRL 15). The Elk-Antelope field in PRL 15 is the anchor field for the proposed Papua LNG project. The transaction, which is subject to the satisfaction of closing conditions and approval from the necessary parties, is expected to close in September 2016.
Edited from press release by David Rowlands
Read the article online at: https://www.lngindustry.com/liquefaction/22072016/exxonmobil-to-acquire-interoil-2799/