Equinor capitalizes shares in Lundin Petroleum for increased direct ownership in Johan Sverdrup and a cash consideration
Equinor ASA (OSE: EQNR, NYSE EQNR) has agreed with Lundin Petroleum AB to divest a 16 percent shareholding in Lundin Petroleum for a direct interest of 2.6 percent in the Johan Sverdrup field and a cash consideration of around USD 650 million.
“Since 2016 we have more than doubled the value of our investment in Lundin. This transaction gives us the opportunity to capitalize on this value creation, and at the same time increase our direct ownership in the Johan Sverdrup field,” says Eldar Sætre, President and CEO of Equinor.
Under the terms of the agreements, Equinor will divest around 54.5 million shares in Lundin at a price of SEK 266.4 per share. Total consideration for the divestment of shares in Lundin amounts to around USD 1.56 billion. Equinor will acquire a 2.6% direct ownership share in the Equinor operated Johan Sverdrup field for a cash consideration of USD 910 million.
Through this transaction, Equinor is realizing significant value creation from its investments in Lundin Petroleum. Equinor announced its investments in Lundin in 2016 at an average weighted cost price of SEK 121 per share, adjusted for the divestment of International Petroleum Corporation. Equinor has more than doubled the value of its invested capital, including its remaining shareholding in Lundin Petroleum.