Oil States plans to spin off accommodations unit into publicly traded company

Tue Jul 30, 2013 7:06pm EDT
 
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July 30 (Reuters) - Oilfield services provider Oil States International Inc said its board had approved a plan to spin off the company's accommodations business into a standalone, publicly traded company.

Oil States said the earliest it could convert its accommodations business into a real estate investment trust (REIT) would be in the first quarter of 2015.

The accommodations business provides housing for energy industry workers in remote locations in Canada, the United States and Australia. It accounted for a quarter of Oil States' 2012 revenue of $4.41 billion, and half of its 2012 operating income of $684 million came from that business.

In May, bowing to pressure from shareholder Jana Partners LLC, the company said it was considering spinning off its accommodations business, possibly through a REIT.

Oil States, with a market capitalization of $5.06 billion, is a diversified services company that provides well site services, distributes pipes and builds offshore equipment.

The company's shares were up about 7 percent in trading after the bell after closing at $96.93 on the New York Stock Exchange.