by Christopher Freeburn | July 30, 2013 11:02 am
Oil giant Hess (HES) is selling another asset in order to concentrate on its core exploration and production businesses.
U.K. energy provider Centrica Plc (CPYYY) will acquire Hess’ Energy Marketing division for $1.03 billion. Centrica will pay $731 million in cash and $300 million in working capital to purchase the business, Reuters notes.
The Energy Marketing unit has 23,000 customers in 18 U.S. states. The transaction is expected to be completed during the fourth quarter.
Under pressure from activist stakeholder Elliott Management, Hess has been moving to sell off non-core assets. Elliot Management has been pushing to breakup Hess since the beginning of this year.
So far this year, Hess has sold business units worth $4.5 billion. It plans to use proceeds from the Energy Marketing unit sales to fund share buybacks. The company has authorized $4 billion in share repurchases.
Shares of Hess rose almost 1% in Tuesday morning trading.
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