It was announced today that the duo are contemplating selling shares representing approximately a total of 5% of the Norwegian company.
It would be carried out through an accelerated book-building process.
Aker and BP currently control around 40% and 30% respectively of the shares outstanding in Aker BP.
The sale would be split in proportion with the pair’s current holdings.
As such, BP would sell shares representing about 2.1%, while Aker would flog shares representing approximately 2.9%.
If the sale is completed, the free float in Aker BP will increase from 30% to 35%.
Following the completion of a sale, BP and Aker will enter into a six-month lock-up for the shares they’d then hold in the company.
Bernard Looney, BP chief executive said: “Aker BP has established itself as an undoubted Norwegian success story, with its value increasing significantly over the past five years.
“This transaction will enable BP to realise some of the considerable value Aker BP has already generated while remaining committed to its ongoing success and value creation for shareholders.
“Consistent with our long-standing track-record of active portfolio management, these divestment proceeds will be expected to further strengthen BP’s balance sheet and support our ongoing buyback commitment.”
Since the creation of Aker BP in 2016, it has pursued a successful organic and inorganic growth strategy, combining value creation with an “investment grade-rated” balance sheet.
A pure-play oil and gas company, the Oslo-listed firm boasts industry-leading low emissions and low-cost operations, enabled by digitalisation.
It also has “strong production growth”, a “robust” balance sheet and delivers “attractive returns”.
Aker BP operates five assets, Alvheim, Ivar Aasen, Skarv, Ula and Valhall, and is also a partner in Johan Sverdrup.
Øyvind Eriksen, president and CEO of Aker, said: “Aker has a large portfolio with a variety of investments across different sectors whereas Aker BP represented 50% of Aker’s gross asset value per 3Q 2021.
“Aker BP is, and will remain, a core holding in Aker’s portfolio. The aim of the offering is however to balance Aker’s portfolio by freeing up liquidity, diversifying and continue growing the portfolio.
“If the Offering is completed, Aker BP will remain the largest investment in Aker’s portfolio and Aker will remain the largest shareholder in Aker BP.”
Proceeds from this transaction will form part of BP’s target of delivering $25 billion of divestment and other proceeds by 2025.
The oil and gas supermajor announced at the time of its recent third quarter 2021 results that it expects $6-7 billion of divestment and other proceeds in 2021.