Irving oil giant Exxon mulls sale of elastic polymer business in $800 million deal



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Irving oil giant Exxon mulls sale of elastic polymer business in $800 million deal

Exxon Mobil Corp., often stylized as ExxonMobil, had been mulling a potential sale of its AES (Advanced Elastomer Systems) division in a deal that could value the unit at roughly $800 million including debt, a press agency report published late on Wednesday had unveiled citing unnamed sources familiar with the subject-matter.

In point of fact, latest move of ExxonMobil, the Irving, Texas-based American multinational oil and natgas megalith, could enable the energy mogul to downsize some of its soaring debt-loads, which had summed up at an approximated $45.5 billion as of December 31, suggested analysts.

On top of that, a potential sale of Exxon’s AES division came forth at a time, while its shares’ prices were flying higher in the Wall St., surging as much as 37 per cent year-to-date over investors’ optimism that a latest trend of recoup in crude oil prices might benefit the company to lighten up its debt-piles.

Nonetheless, recent media headline on a potential sale of Exxon’s elastic polymer business seems to have little impact in the Wall St., as NYSE-listed shares’ prices of ExxonMobil were trading 0.23 per cent higher to $56.45 in late-afternoon US trading hour after rising as much as 0.5 per cent in pre-market trading.

Exxon explores sale of elastic polymer business AES

Aside from that, the press agency report had also quoted sources as saying that the 22-year-old energy giant had already hired leading US lender and financial services provider Morgan Stanley to lobby in favour of a potential sale of its AES.

Meanwhile, since Exxon had digested a histrionic loss of $22.4 billion last year, the company’s latest divestiture move could indicate an attempt to convince Wall St. that the energy mogul could rebound this year following years of losses mostly incurred due to an outlandish overspending.