(Adds CEO quote, dividend plan)
OSLO, Dec 21 (Reuters) - Norway's Aker BP will
buy the oil and gas business of Sweden's Lundin Energy
, forming the second-largest listed petroleum firm on
the Norwegian continental shelf, the two companies said on
Tuesday.
The cash and stock transaction values the acquired assets at
approximately 125 billion Norwegian crowns ($13.9 billion), they
said.
"The proposed combination has strategic, and value accretive
benefits and the combined company will be characterized by
increased scale, world-class quality, and high returns," Aker BP
and Lundin said in a joint statement.
The transaction will be settled through a cash payment of
$2.22 billion and a share consideration of 271.91 million new
shares issued from Aker BP and distributed to the Lundin Energy
AB shareholders.
"We are now creating the E&P (exploration and production)
company of the future which will offer among the lowest CO2
emissions, the lowest cost, high free cash flow and the most
attractive growth pipeline in the industry," said Aker BP Chief
Executive Karl Johnny Hersvik, who will remain CEO.
Aker BP also announced a 14% increase in its quarterly
dividend to $0.475 per share from January 2022.
"It is further proposed that the combined company will
continue to pay this increased dividend, and has an ambition to
further increase this dividend by a minimum of 5% per annum from
2023 onwards at oil prices above $40 per barrel," it said.
Aker ASA will own 21.2% of the merged firm, oil
major BP will own 15.9%, while Lundin family company
Nemesia will hold 14.4%.
($1 = 8.9705 Norwegian crowns)
(Reporting by Terje Solsvik, editing by Gwladys Fouche,
Bernadette Baum and Jane Merriman)