We work with leading companies on large scale international corporate transactions. These case studies illustrate the depth of our practice.
BP
BP on the sale of its 2% equity stakes in PetroChina Company Limited (PetroChina) and China Petroleum and Chemical Corporation Limited (Sinopec) in late 2003.
BP acquired its holdings in PetroChina and Sinopec when the companies were floated on international equity markets in 2000 – Hong Kong and New York in the case of PetroChina, and Hong Kong, New York and London for Sinopec.
The disposals were achieved through accelerated bookbuilt placings arranged by Goldman Sachs (for the PetroChina disposal) and Morgan Stanley (for the Sinopec disposal). The sale of around 3.5 billion “H” shares in PetroChina was made for HK$3.70 per share, a total of approximately HK$13 billion ($1.65 billion). The sale of around 1.8 billion “H” shares in Sinopec was made for HK$3.15 per share, a total of approximately HK$5.8 billion ($742 million).
The transactions completed in early 2004. They were led by Herbert Smith’s London office and the transaction documents were subject to English law. Our Beijing and Shanghai offices worked closely with our London office to advise on Hong Kong law and practice. Our US securities team was also closely involved.
Amerada Hess
Herbert Smith acted for Amerada Hess, a leading US oil and gas company, in connection with the $670 million restructuring of Premier Oil.
As part of the restructuring, 23% of Premier’s interest in West Natuna Sea Block A in Indonesia was transferred to Amerada Hess in return for the cancellation of its 25% ordinary shareholding and 16.4 million convertible shares in Premier. Amerada also made a cash payment to Premier of $17 million. Petronas International Corporation, with whom Amerada Hess entered into a strategic investment in Premier in 1999, also exited its 25% stake in the company.