Exxon Mobil Corporation (NYSE:XOM) has been considering selling out its Advanced Elastomer Systems (AES) division. According to unconfirmed sources, the company intends to sell the division for $800 million. Part of the proceeds will be channeled towards the payment of its massive debt.
The company considers the new deal a progressive one
Exxon considers the plan at hand as a massive opportunity that will see it cut down on its debt pile. The plan is to nibble the debt to the last coin. Sources show the total debt standing at about $45.5 billion, and this figure represents the accumulation towards the end of last year.
The company’s shares went up by about 37%.It attributes the rise to the investors who hope the company might get higher proceeds in the near future. The investors expect that the oil major might have a lot to gain from the anticipated recovery in energy prices.
Morgan Stanley has accepted the Exxon’s invitation to solicit interest in AES from potential buyers. Equitry firms happen to be part of those eyeing the deal.
It is critical to factor that no deal is 100% certain, and the same applies to the deal in question. Sources sent out a word of caution in this regard and urged that their identities be kept anonymous. According to sources, the matter happens to be a confidential one, and things must remain that way.
The company making efforts to get Wall Street’s validation
Steps to get Exxon and Morgan Stanley to comment on the matter haven’t yielded “fruits,” and that is because both of them prefer to remain tight-lipped until the deal comes to a close.
The company recorded what it deemed a historic loss totaling about $22.4 billion in the previous year. Since then, Exxon has been making endless attempts on its bid to try and validate its business operations to the Skeptical Wall Street. It hopes to succeed in its quest to convince Wall Street that it can spring back after many years of overspending that plunged it into massive debts. Exxon has been lagging behind rivals who have been achieving in terms of guaranteeing clearer fuel to customers.
