By Ron Bousso
LONDON, Nov 10 (Reuters) - BP and Aker said
on Wednesday they are exploring a possible sale of a 5% stake in
their Norwegian oil and gas joint venture Aker BP,
after its shares hit an all time high this week.
If the sale goes ahead, BP would sell an approximate 2.1%
stake and Aker a 2.9% stake, reducing their stakes in Aker BP to
27.9% and 37.1% respectively.
The sale would increase the free float in the company to
35%, they said in a statement.
Aker BP, which was created in 2016 when BP and Aker merged
their Norwegian upstream operations, today has a market value of
around $14.6 billion.
Its shares closed at 345.40 NOK ($40.55), slightly below an
all-time high of 349.80 NOK they hit on Nov. 8.
Last month Aker BP increased its dividend payout after
third-quarter profits soared on the back of strong oil and gas
prices.
"Aker BP has established itself as an undoubted Norwegian
success story, with its value increasing significantly over the
past five years," BP Chief Executive Officer Bernard Looney
said.
"This transaction will enable bp to realise some of the
considerable value Aker BP has already generated while remaining
committed to its ongoing success and value creation for
shareholders."
The sale is part of BP's target of delivering $25 billion of
divestment and other proceeds by 2025.
BP and Aker retained J.P. Morgan and Pareto Securities as
Joint Global Coordinators and Joint Bookrunners to explore the
potential block sale, they said.
($1 = 8.5185 Norwegian crowns)
(Reporting by Ron Bousso; Editing by David Gregorio)