Canadian Oil Sands Brace As Oil Majors Dump Shares

31 May 2017   Canada

Royal Dutch Shell and ConocoPhillips struck deals in March to sell Canadian oil assets to two Canada-based producers. In both deals, parts of the consideration for the transactions were shares of the Canadian companies that Shell and ConocoPhillips received. Although the share transactions are subject to lock-up periods of up to six months following the closing of the deals, Shell and ConocoPhillips are getting ready to sell those shares—possibly months after acquiring them—regulations and agreements permitting. The potential sale of billions of dollars worth of shares in Canadian Natural Resources and Cenovus Energy may see the Canadian equity market flooded with company stock, according to analysts quoted by Reuters. Hedge funds, private equity firms, or institutional investors may be interested in the stakes, if shares are priced at discount to market prices, analysts reckon. The possible sales, however, could also rekindle concerns over how confident investors are in placing […]

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