BP is seeking to sell a 50pc stake in its solar business as the oil giant attempts to win over activist investor Elliott. writes Jessica Clark.
Pressure is building on chief executive Murray Auchincloss following reports that Elliott, which has built a near 5pc stake, was disappointed with his new strategy.
Analysts warn the New York hedge fund could push to oust chairman Helge Lund - appointed in 2019 - who also leads the board of Ozempic maker Novo Nordisk.
The Norwegian, who oversaw BP's failed pivot to green energy, is up for re-election at the annual general meeting next month.
A fortnight ago, Auchincloss unveiled a plan to spend less on renewable power and invest more in gas and oil.
He is under pressure to boost BP's share price and profits as it underperforms rivals Shell and Exxon Mobil.
The strategy included plans to raise nearly £16bn by 2027 by offloading parts of the business, including a stake in its Lightsource solar arm.
And Saudi Aramco is reportedly weighing up a bid for its lubricants business Castrol - which BP has also put up for sale.
But it was revealed last week that Elliott wants BP to sell its petrol stations to raise a potential £31bn.
Bids for Lightsource are due in June, the company said in a document seen by Reuters.
BP intends to bring in a partner and launch a sales process in the near future but declined to comment further.
In a document dated March 2025, it said it was seeking a strategic partner for half of the solar company this year in a cash transaction. Called Project Scala, BP is seeking a strategic partnership with 'established leaders with extensive experience' in the renewables industry.
Governance would reflect joint control of the assets, BP wrote in the document. Initial, non-binding offers are due in June and the company will shortlist bidders in July.
BP said the platform had 5.7 gigawatts of operational assets and was active in 19 markets. It said Lightsource was expanding into battery storage and onshore wind.
