Weatherford International Ltd (NYSE:WFT) Raises $400 M From Asset Sale

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Dallas, Texas 10/16/2013 (Financialstrend) – Weatherford International Ltd (NYSE:WFT) is $12.2 billion oil and gas equipment manufacturer. In a mandatory regulatory filing with SEC on October 7, the company disclosed that it has completed the sale transaction of its 38.5% equity stake in Borets International Limited. The total deal size is expected to be in the range of $400 million. The equipment manufacturer which has its origins in Switzerland disclosed to the regulator that it was in receipt of $325 million paid by Boret towards part payment of the deal. WFT is planning to use the proceeds which it has received to finance its existing debt commitments. The reminder of approximately $45 million is expected to be remitted by Boret over the next 30 days. In lieu of the pending $45 million, WFT is in receipt of $30 million promissory note. On successful completion of the pending cash transaction, the firm hopes to record profit of $25 from this asset sale before the FY 13 year end.

During trading on October 15, the shares of the oil services company had come down by 0.81%. It had settled at $15.84 per share for the day. This temporary dip in market value is contrary to the steady gains the stock has scripted over the past few months. In the previous 30 day trading period, the stock has appreciated by 6%. Investors who bought into the stock 12 months back would have seen their holdings go up by 28%. This steady surge in value has happened even as its sales growth has happened at a slower pace. In its 2Q, the services company had posted a 3.2% increase quarter on quarter basis. Through the trailing 12 months, it had posted sales of $15.5 billion resulting in a net loss from operations of $148 million. Analysts have set a PT of $17.13 for the shares of this stock.

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