Harbour Energy (LSE: HBR) has agreed to acquire “substantially all” of Wintershall Dea’s upstream oil and gas portfolio in a transformative $11.20 billion cash and stock deal.
The acquisition, which includes assets in Norway, Germany and North Africa, will boost Harbour’s production by over 300,000 barrels daily and increase its reserves by 1.5 billion barrels.
Shares in Harbour Energy closed up 21% at 295.20 pence on Thursday following the announcement. The company will pay $4.15 billion in new shares to Wintershall shareholders BASF and LetterOne at a 60% premium to its 30-day average price.
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It will also take on $4.90 billion of Wintershall’s existing bonds and fund a further $2.15 billion through cash flow generated before completion in late 2024.
The deal is Harbour’s largest yet and will support an 80% increase in its dividend to 26.25 cents per share. CEO Linda Cook said it marks a “transformational step” towards building a “uniquely positioned, large-scale, geographically diverse independent oil and gas company.”
Shares in Harbour Energy are down 4.8% year over year.
