Premier weighs up share plac­ing

The Press and Journal (Moray) - - BUSINESS -

Premier Oil is re­ported to be mulling over a share plac­ing to help finance a deal for £1.17 bil­lion worth of North Sea fields.

The Lon­don-listed firm is in the run­ning for a pack­age of as­sets put up for grabs by US oil ma­jor Chevron, the Sun­day Times re­ported.

Premier faces stiff com­pe­ti­tion from the likes of pri­vate eq­ui­ty­backed Chrysaor, Is­raeli firm Delek Group and petro­chem­i­cals gi­ant Ineos, the re­port said.

Ineos, led by bil­lion­aire Jim Ratcliffe, is in talks to buy Cono­coPhillips’ UK North Sea busi­ness.

“Premier de­clined to com­ment on ‘spec­u­la­tion’”

To re­main in con­tention in the Chevron auc­tion, Premier is weigh­ing up a rights is­sue or a share plac­ing, the re­port said, cit­ing in­dus­try sources.

The com­pany could also di­vest its Latin Amer­i­can busi­ness to re­duce the num­ber of new shares it would need to sell, it was sug­gested.

Premier de­clined to com­ment on “mar­ket spec­u­la­tion”.

It is be­lieved the com­pany is yet to de­cide whether to bid for the Chevron pack­age, and would not con­sider sell­ing its Latin Amer­i­can busi­ness, which in­cludes in­ter­ests in Brazil and Mex­ico.

Premier, which has a base in Kingswells, Aberdeen, restruc­tured its debts in 2017.

The firm’s fi­nances are grad­u­ally im­prov­ing.

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