Amerada Hess to buy Lasmo for $3.5 billion

Published November 6th, 2000 - 02:00 GMT

Amerada Hess Corp. in a press released said Monday, that it has agreed to buy Lasmo PLC, the U.K. oil exploration and production group, for 2.4 billion sterling ($3.5 billion) or 180 pence per share in a mix of cash and shares. 

 

Lasmo shareholders will receive 98.29 sterling in cash plus one new Amerada Hess Share for every 78.7 Lasmo shares. 

 

The deal represents a premium of 28 percent to Lasmo's closing price Friday. The deal will boost Amerada Hess's earnings per share from 2001 and will raise production to 582,000 barrels per day in 2001 from 374,000 bpd this year. 

 

Shares of Lasmo rose sharply on the news, and were up 21.99 percent at 172 pence by mid-morning in London. Shares of Amerada Hess closed at $62.81 on the New York Stock Exchange Friday.  

 

The deal will create one of the largest global independent exploration and production companies, with the scale needed to compete effectively in the international arena, the companies said. 

 

"The combination of Amerada Hess and Lasmo allows Amerada Hess to achieve its strategic objective of significant growth in oil and gas reserves and production internationally, and in future cash flow and profitability."  

 

Shareholders representing 20.6 percent of Lasmo's share capital have agreed to accept the offer Bridge News reported. 

(petroleumworld)  

 

© 2000 Mena Report (www.menareport.com)

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