Source - Alliance News

BHP Group PLC reported on Friday the merger of its oil and gas business with that of Perth-based Woodside Petroleum Ltd was on track for completion on June 1.

The all-stock merger was first announced back in August. The two formally entered a share sale agreement for the merger of their oil and gas portfolios on November 22.

Upon completion of the merger that will create one of the 10 largest independent energy producers in the world, 52% of the new company will be held by Woodside shareholders and 48% by BHP shareholders.

BHP shareholders are expected to be entitled to one Woodside share for every 5.5 BHP shares they hold.

Based on Woodside’s share price of $25.55 at April 6, the implied value of BHP Petroleum is $23.4 billion.

At this valuation, which is subject to change, the in specie dividend would be $4.62 with $1.98 of franking credits being distributed per BHP share, BHP said.

In a statement on Friday, BHP said the completion of the merger is on track and is targeted for June 1, subject to satisfaction of conditions precedent including approval by Woodside shareholders.

Woodside said in a separate statement on Friday its shareholders will vote on the deal on May 19. Woodside also revealed that the independent expert’s report has concluded that the merger is in the best interests of Woodside shareholders.

Woodside will retain its primary listing on the Australian Securities Exchange and is seeking a standard listing on the London Stock Exchange.

BHP shares were up 2.2% at 3,004.50 pence each in London on Friday morning, and were up 1.9% to R 577.64 each in Johannesburg.

Shares in Woodside closed 1.5% lower at A$32.40 each in Sydney on Friday.

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