Another highly accretive NAV deal
Aker BP has agreed to acquire Hess Norge for USD2.0bn, including tax a loss carry forward with a nominal net value of USD1.5bn. The pending deal is to be financed with mix a mix of equity (USD500m) and debt, and would increase Aker BP’s stakes in Valhall and Hod from 36% and 38%, respectively, to 100%. The deal would also increase Aker BP’s production by 17%, and its share count by 8%. We calculate a NAV uplift NOK24/share, but have increased our target price by NOK20 to NOK187 (167) as Aker BP intends to farm down Valhall/Hod to ~67% post-deal. Our recommendation remains BUY.Aker BP ASA engages in the exploration, development, and production of petroleum resources on the Norwegian Shelf. In addition, Co. has a separate Johan Sverdrup business unit to manage its interest.
DNB Markets is the investment banking arm of DNB Bank ASA and is focused primarily on the Nordic region, as well as internationally on niches such as global shipping, energy and related services, and seafood. DNB Markets offers services in FICC, Equities and Investment Banking advisory from offices in Oslo, Stockholm, London, Singapore and New York. Equity research coverage is offered on c250 Nordic companies. DNB was ranked no.2 in Extel Nordic Research 2017. The DNB Markets’ Credit and FICC Macro & FX Research teams are repeatedly highly rated by Prospera Nordic Institutional Investor Surveys.
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