UBS and JPMorgan were in the market on Thursday, selling a $205 million block of shares in Oil Search, as revealed by Street Talk.
The shares were being offered on behalf of Kumul Petroleum Holdings Limited, Papua New Guinea's national oil and gas company, according to a term sheet sent to fund managers and obtained by this column.
The brokers set a floor price of $6.55, representing a 3.8 per cent discount to Oil Search's last close and a 4.3 per cent discount to the 5-day volume-weighted average price. Bids were being taken in 5¢ increments.
"In 2014, KPIL entered into funding arrangements with UBS in relation to its Oil Search Holding, which were amended in 2016 by similar funding arrangements between UBS and JPM," the term sheet says.
"Following receipt of written notice from KPIL that it is seeking to terminate the funding arrangements and sell its interest in Oil Search, UBS and JPM are together selling 31.3 million shares in Oil Search."
It is understood the share sale will result in the termination of all funding arrangements in relation to KPIL's holding and the full exit of KPIL from the Oil Search register.
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