PE, Itochu-led consortium near $7b Samson acquisition
A KKR-led consortium, that is said to include Japan's Itochu Corp., is nearing the acquisition of Oklahoma-based oil- and natural-gas producer Samson Investment for $7 billion. It will mark one of the world’s most expensive PE buyouts this year if the asset sells at this price, as well as the largest-ever takeover of an oil and gas producer.
Citing sources close to the company, Reuters reported that KKR is looking to buy a 60% stake Samson assets, while Itochu is looking to own 25%. Private equity firms NGP Energy Capital Management and Crestview Partners are also said to be participating in the deal.
Samson, launched in 1971, is a privately held exploration and production company focused on "most major oil and gas regions in North America," including East Texas, the Texas Gulf Coast and San Juan, its website states. It operates 4,000 wells and has interests in more than 12,500 producing properties, and is comprised of 70% natural gas and 30% oil and liquids.
The consortium's purchase would exclude Samson's Gulf of Mexico operations, Bloomberg reported, and a deal may be announced as soon as tomorrow.
In May, another Asian investor, Richard Ong's RRJ Capital, invested in a US-based oil and gas exploratory firm, Frac Tech. RRJ teamed with Singaporean sovereign wealth fund Temasek Holdings to take a 70% controlling stake in Texas-based Frac Tech, funded by $1.7 billion worth of debt.
Chesapeake Energy Corporation - a natural gas producer which last year received backing from China Investment Corporation (CIC), the Korea Investment Corporation (KIC), Temasek and Hopu - also boosted its holding in Frac Teck to 30% from 26%. In September, Frac Tech filed for a New York Stock Exchange listing, with hopes of raising $1.5 billion.
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