Brightoil Petroleum to Buy Anadarko's China Unit for $1.1B
HONG KONG, Feb 18 (Reuters) - Hong Kong-listed oil trader Brightoil Petroleum Holdings Ltd has agreed to buy Anadarko Petroleum Corp's China unit for $1.08 billion in a major push into the upstream segment.
Brightoil, whose international oil trading and bunkering businesses have been hit hard by the global financial crisis, has been searching for upstream investment opportunities in China and overseas for several years.
The firm, which also owns oil tankers and storage facilities in China, posted a loss of HK$721 million ($92.97 million) for the financial year ended June 2013.
Shares of Brightoil surged as much as 21.6 percent when trading resumed on Tuesday afternoon. Trading in the stock was suspended last week pending an announcement of a substantial acquisition.
"The acquisition is an important step for the group" to turn itself into an integrated oil and gas company with both upstream producing business as well as oil trading, it said in a filing with the Hong Kong stock exchange.
Analysts say the deal does not look cheap based on the target's production figures, but it is too early to tell whether Brightoil is paying a fair price due to a lack of reserve data.
"At the first glance, it does not look like a bargain to me," said Simon Powell, head of Asia oil and gas research at CLSA in Hong Kong.
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