The merger of Aker BP and Lundin Energy’s oil and gas businesses is due to be completed after market close today, finalising the creation of a major new Norwegian energy player.
In a statement on Thursday, Aker BP (OSLO BØRS: AKRBP) said final registration of completion in the Norwegian Register of Business Enterprises would be made after the close of trading on the Oslo Stock Exchange on 30 June.
Aker BP announced it would buy Lundin Energy’s E&P business via a combination of cash and shares in December, in a deal aimed at creating “the leading European independent E&P,” with an estimated valuation of around 125 billion NOK (£10.5bn).
The new company will be the second largest oil and gas producer on the Norwegian Continental Shelf (NCS), with a combined oil and gas production of approximately 400,000 barrels of oil equivalent per day.
The companies said that creditor notice periods for the merger had expired on 7 June 2022 without any creditors objecting.
They also confirmed that the Swedish Companies Registration Office and the Norwegian Register of Business Enterprises have issued respective certificates confirming that parts of the merger governed by Swedish law and Norwegian law, respectively, have taken place in the prescribed manner.
In addition, the Lex Asea distribution of shares in the new company has now been completed by Lundin Energy.
Lundin shareholders will hold 43% of the enlarged Aker BP, and will receive approximately 78.78 Swedish krona ($7.76 based on average exchange rates), plus 0.95098 shares in Aker BP, in the form of Swedish Depository Receipts, for each share outstanding as at completion of the Merger.
According to timelines set out in the company’s statement, the merger considerations of cash and depository receipts are due to be paid on 12 July.
The enlarged Aker BP will operate six major production hubs, in addition to being the second largest owner of the giant Johan Sverdrup oil field, with further growth through participation new field development projects such as NOAKA, Wisting and Valhall NCP/King Lear, as well as continued field development activities around existing assets.
Meanwhile, having spun off its oil and gas assets, Lundin Energy has renamed itself Orrön Energy and will now focus entirely on renewables development.
Orrön began trading on Nasdaq Stockholm on 23 June, initially under Lundin Energy’s ticker “LUNE” until its name change has been registered, expected to occur on 1 July, at which point its ticker will become “ORRON”.
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