EGM approves Det norske & Aker Exploration merger

Aker Barents. Photo: Aker.

The merger of Norwegian oil minnow Det norske oljeselskap ASA (OSL: DETNOR) with sector player Aker Exploration ASA (OSL: AKX) was approved on Oct. 19 by the extraordinary general meetings (EGMs) in both companies.

The partners announced merger plans in the summer of 2009.

The new entity will retain the name Det norske oljeselskap ASA and Norwegian industrial group Aker ASA (OSL:AKER) will be the main owner with around 40% of the shares.

At the EGM in Det norske, a total 41.441 million shares voted in favour of the transaction, corresponding to 94.34% of the votes. A total 69.4% of the outstanding shares were represented at the EGM.

The EGM in Aker Exploration also voted for the merger with an overwhelming majority.

Det norske’s shareholders will own 82% of the merged company and Aker Exploration’s shareholders — 18%. Shareholders in Det norske will receive 1.403328 shares in Aker Exploration for each share in Det norske.

The merger is expected to be registered and carried out in 2009.

The merged entity will be the second largest oil company on the Norwegian Continental Shelf (NCS) in terms of the number of operatorships and exploration activity, Det norske said in a statement. Following the merger, the company will be operator for 32 licences and will have 70 licences in the portfolio.

The merger is pending on approval from Norwegian authorities and third parties, and there is also a condition that the shares in the merged company are listed on the Oslo Stock Exchange.

Source: Tradingmarkets.com