A.P. Moller-Maersk AS spun off its oil and gas drilling unit and listed it separately on the Copenhagen stock exchange on April 4, where it was traded slightly below the book value it had in Maersk's own accounts.
The demerger is a part of the Danish shipping group's 2016 plan to refocus its efforts into transport and logistics, a plan that has also led to the divestment of its oil exploration and production business to France's Total SA in 2017.
Shares in the new company, called The Drilling Co. of 1972 AS, traded at 555 Danish crowns per share at 3:05 a.m. CST (8:05 GMT) on April 4, which would value the company at around 24 billion Danish crowns (US$3.6 billion).
Had investors valued it at the book value it had in Maersk's accounts prior to the separate listing, the share price would have been around 600 crowns, Sydbank said.
Shares in Maersk fell 11% after the demerger, which was slightly less than the around 14% the share price should have gone down if investors had valued the drilling unit at the book value, Sydbank said.
Maersk's existing shareholders had been given shares in the drilling company under the demerger arrangement, but some of them had probably sold those shares and bought shares in Maersk, seeking exposure to the shipping sector rather than oil drilling, Sydbank analyst Mikkel Emil Jensen said.
The main shareholder and the chairman of Maersk both backed management's efforts to reshape the business at the annual general meeting on April 2, although other investors raised concerns about the rate of progress. (US$1 = 6.6399 Danish crowns)
Recommended Reading
Shell’s CEO Sawan Says Confidence in US LNG is Slipping
2024-02-05 - Issues related to Venture Global LNG’s contract commitments and U.S. President Joe Biden’s recent decision to pause approvals of new U.S. liquefaction plants have raised questions about the reliability of the American LNG sector, according to Shell CEO Wael Sawan.
Why Endeavor Energy's Founder Sold His Company After Years of Rebuffing Offers
2024-02-13 - Autry Stephens', the 85-year-old wildcatter, decision to sell came after he was diagnosed with cancer, according to three people who discussed his health with him.
Sunoco’s $7B Acquisition of NuStar Evades Further FTC Scrutiny
2024-04-09 - The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act for Sunoco’s pending acquisition of NuStar Energy has expired, bringing the deal one step closer to completion.
Chevron Adds to Carbon Capture Tech Portfolio with ION Investment
2024-04-04 - Chevron New Energies led a funding round that raised $45 million in Series A financing for ION Clean Energy, according to a news release.
Exxon, Chevron Tapping Permian for Output Growth in ‘24
2024-02-02 - Exxon Mobil and Chevron plan to tap West Texas and New Mexico for oil and gas production growth in 2024, the U.S. majors reported in their latest earnings.