Woodside Confirms Proposal to Merge with Oil Search
Following rumours about a potential merger, Woodside Petroleum (ASX:WPL) confirmed today that it approached Oil Search Limited (ASX:OSH) with a non-binding proposal.
In an announcement to the ASX Woodside stated that it provided Oil Search with ‘a confidential and non-binding proposal to merge through a scheme of arrangement under the Paua New Guinea Companies Act.’
Oil Search shares are valued at 0.25 Woodside shares, which shareholders would receive if the discussions result in a transaction. WPL was last traded at $30.58 which means he offer values OSH at $7.65, a 13.7% premium on yesterday’s closing price of $6.73.
Both companies entered a trading halt which will be lifted just after 11am (AEST).
Woodside stated that the approach is consistent in line with its existing strategy to maximise shareholder value. WPL intends to maximise the value of core assets, leverage capabilities and growth the company’s portfolio.
Charter Hall Increases FUM
Integrated property group Charter Hall (ASX:CHC) announced today that it increased its Funds Under management (FUM) by $0.95bn to $14.5bn.
Since 1 July 2015 Charter Hall has acquired approximately $700m worth of industrial assets, as the company believes it is a key sector due to strong fundamentals. The total FUM in the industrial and logistics sector is $3.5bn.
Managing Director David Harrison said: “We continue to improve the quality of these portfolios through a disciplined approach to asset selection, a preference for off market transactions and an emphasis on quality tenants, long leases and prime estates and single tenant assets.”
Charter Hall said that it will have a slight positive impact on FY16 results, but it will remain within the guidance provided during the FY15 results.
Author: Imran Valibhoy
Sep 08, 2015
Since Joining the firm in 2006, Imran has worked on a range of M&A and Capital Market transactions in the natural resources, mining as well as projects in the renewable energy sector. Prior to joining Wise-owl, Imran worked at Euroz Securities in Perth, aiding in the advisory and valuation of companies in the mining and industrial sectors in Australia. Imran has a Masters in Banking & Finance from City University's Class Business School in London and a Bacheloor degree in Commerce from UWA.