ConocoPhillips is preparing to offload its stake in Cenovus Energy Inc, which it acquired as part of an asset sale to the Canadian oil and gas producer last year, people familiar with the matter told Reuters.
The U.S. energy company has held discussions with investment banks about appointing advisers to the sale and could offer the shares to institutional investors as early as this month, said the people. They cautioned that the precise timing would depend on market conditions and could change.
If ConocoPhillips does not complete the sale in June or early July, it would then likely wait until September when institutional investors will have returned from their summer vacations, they added.
The ConocoPhillips stake in Cenovus is worth $2.6 billion based on its current share price but it would likely be sold at a small discount, the sources said. It would still be one of the biggest Canadian equity share sales this year.
ConocoPhillips has been actively selling assets and cutting costs in the past two years in order to cull debt and boost its dividend. It sold $17 billion in assets in 2017.
(Reuters)
