Det Norske Oljeselskap seen as a candidate for takeover
Det Norske Oljeselskap, the listed Norwegian oil company, is seen as a candidate for takeover, according to Dagens Naeringsliv. The Norwegian business daily cited an analysis by Arctic Securities which stated that Det Norske is trading at a P/E for 2015 of seven compared to its larger peer who are trading at a P/E of 12-13, making Det Norske an interesting takeover candidate.
The paper reported that Norwegian oil giant Statoil is trading at a P/E of around 12 which is beneficial if Statoil wanted to use its shares as a method of payment. The paper also pointed out that Statoil is likely interested in Det Norske’s 20% stake in the two Johan Sverdrup oil field licences which Statoil operates. The paper also noted however that Det Norske is controlled by Aker which is in turn controlled by the Norwegian businessman, Kjell Inge Rokke, who would never sell at a multiple as low as seven.
Det Norske announced earlier this week that it has agreed to acquire Marathon Oil Norway for USD 2.7bn.
Source Dagens Naeringsliv