Woodside Petroleum has published the Explanatory Memorandum (EM) and Independent Expert’s Report (IER) for the proposed merger with BHP Group’s ((BHP)) Petroleum division.
The IER values BHP Petroleum below the value implied by the market on 8th April and below the analyst’s estimate, though concludes the merger is in Woodside shareholders’ best interests. The Woodside shareholder vote is on 19th May.
The Neutral rating is maintained on a full valuation, and the broker prefers Santos ((STO)) in the sector.
The target falls by -5% to $32.90 on reduced values for the Sangomar and Trion oil fields.
Sector: Energy.
Target price is $32.90.Current Price is $31.84. Difference: $1.06 – (brackets indicate current price is over target). If WPL meets the UBS target it will return approximately 3% (excluding dividends, fees and charges – negative figures indicate an expected loss).
