By John Tilak and David French
TORONTO/NEW YORK (Reuters) - ConocoPhillips
The U.S. energy company has held discussions with investment banks about appointing advisors 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 C$2.7 billion ($2.1 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.
When Cenovus acquired oil sands and natural gas assets from ConocoPhillips for C$17 billion last year, it took 208 million shares of Cenovus, as well as C$14.1 billion of cash.
The deal made ConocoPhillips the biggest investor in the Calgary, Alberta-based company, although the U.S. oil giant has said it would not be a long-term holder of Cenovus equity.
ConocoPhillips and Cenovus declined to comment. Sources declined to be identified as the information is not public.
(Reporting by John Tilak in Toronto, David French in New York; Additional reporting by Ernest Scheyder in Houston and Rod Nickel in Winnipeg; Editing by Denny Thomas and Chizu Nomiyama)
This story has not been edited by Firstpost staff and is generated by auto-feed.
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Updated Date: Jun 05, 2018 01:05:07 IST