BASF’s oil and gas subsidiary’s IPO postponed on market conditions

LONDON (ICIS)–The planned initial public offering (IPO) of BASF’s natural oil and gas subsidiary Wintershall Dea, which is jointly owned with LetterOne, has been postponed due to market conditions.

The IPO was planned for the second half of 2021, having been postponed on prior occasions.

BASF holds a 67%-stake in Wintershall Dea and LetterOne the remaining 33% after Wintershall and DEA Deutsche Erdoel merged  in May 2019.

“While oil and gas prices at the spot market as well as at the shorter end of the forward price curve have recovered considerably, this improvement is not yet fully reflected in the forward-looking broker consensus assumptions,” said the German chemicals major on Wednesday.

“In addition, market valuations of oil and gas companies have for various reasons not again reached the level the shareholders expect to kick off the IPO.”

BASF said higher prices have helped Wintershall Dea to post strong cashflow, although its CFO said the strategic goal remains a sale.

“BASF remains fully committed to divest its share in Wintershall Dea,” said Hans-Ulrich Engel.