Weatherford International Ltd (NYSE:WFT) sells its stake in Borets
On September 11, Geneva, Switzerland based Weatherford International LTD (NYSE:WFT) filed Form-8K statutory reports with SEC signalling intention to sell its stake in Borets International Limited. As per the submission, Weatherford has entered into a tripartite agreement with its joint venture partner Tangent Fund Limited and Borets International Limited to sell its approximately 38.5% stake in Borets to Tangent. Weatherford International LTD (NYSE:WFT) expects to raise a total of $400 million from this deal of which $370 million would be paid out in cash. For the reminder $30 Million Tangent is issuing a promissory note to Weatherford International LTD (NYSE:WFT). The management hopes to retire part of its debt from the proceeds of Borets sale. It is estimated that Weatherford International LTD (NYSE:WFT) has netted approximately $25 million from its Borets investment. In an unrelated development, WFT also announced its CFO John Briscoe would be leaving the services of WFT on September 12.
Shares of Weatherford International LTD (NYSE:WFT) shares are trading around $14.90 per share. The share has lost over 5.34% of its value from its previous close. WFT recorded daily volume traded shares of 25.39 million as compared to an average of 6.2 million.
Weatherford International LTD (NYSE:WFT) to focus on growing its artificial lift systems
Weatherford International LTD (NYSE:WFT) is a manufacturer and service provider of drilling and production equipment used in natural oil and gas wells. The company has its operations spread across all the major oil and natural gas producing geographies of North America, Latin America, Africa and few of the former Soviet republic nations. It is a speciality is the artificial lift systems and drilling services which get used when the oil wells do not have sufficient reservoir pressure to push up the petroleum products to the surface. The company proposes to use the $25 million profits it generated from selling Borets into broadening its artificial lift system offerings.