AFRICA OIL SHOULD INTEREST OIL GIANTS - BERNSTEIN
Africa Oil belongs to a group of small oil companies that are relatively inexpensive and at the same time would be a good fit in the big energy giants' portfolios.
It says Bernstein report Energy & Power : M & A Mania from May 2, except Africa Oil also highlights Gulf Keystone, Chariot, Cobalt and Ophir as particularly attractive acquisition targets for the world's biggest oil companies.
The bank is based on the list including key ratio price / net asset value which, according to the bank is the best variable to determine if an acquisition means good value . Africa Oil's quota is at this point is set to 67 percent , compared with, for example Tullow's at 84 percent , or 88 EnQuest and Lundin Petroleum 98 percent.
The report also lists six shops under Bernstein is possible and that also would mean commercial approach. It is found that Total buys Africa Oil with the aim to geographically diversify in Africa - from Uganda into Kenya where Africa Oil has been a major part of their assets.
On this transaction list also found the combination Repsol and Lundin Petroleum. It reminds Bernstein that Spanish Repsol said they want to acquire oil assets in a stable OECD country. The investment bank also believe that BP would be interested in Tullow Oil which is Africa Oil's partners in Africa .
Bernstein's report is a result of the förvärvsvåg currently sweeps across the oil sector , which according to the Bank seriously started when Glencore for a couple of weeks ago bought Caracal Energy for nearly $ 1.4 billion .
GLTA - let's see what the senior board will bring us