COPENHAGEN, Aug. 21 (Xinhua) -- Danish oil and shipping group A.P. Moeller-Maersk has signed an agreement to sell its oil and gas branch to Total S.A. of France for 7.45 billion U.S. dollars in a combined share and debt transaction, the company announced on Monday.
According to the agreement, Maersk will receive an enterprise value per 30 June 2017 of 7.45 billion dollars paid by 97.5 million shares in Total with a value of 4.95 billion dollars equal to approximately 3.76 percent of Total, it said in a statement.
In addition to the shares, Total is assuming a short-term debt of 2.5 billion dollars via debt push down from Maersk into Maersk Oil.
Total will take over Maersk Oil's entire organization, portfolio, obligations and rights with minimal pre-conditions.
It added that planned development schedules and investments in strategic and sanctioned projects will be upheld.
Maersk said the sale is "a material step forward "in its strategy to divest its oil and oil related activities in a bid to create an integrated transport and logistics company.
"In determining the best future ownership structure for Maersk Oil, it has been imperative for us that the capabilities and assets created in Maersk Oil continue to be developed, and that long-term investments are upheld, especially in the Danish part of the North Sea," said Maersk CEO Soeren Skou.
The agreement will strengthen the financial flexibility of Maersk and free up resources to focus on its future growth, Skou added.
According to Maersk, the deal is subject to regulatory approval from relevant authorities and is expected to take place during the first quarter of 2018.
