* Sells the business to Marubeni-Itochu Tubulars America Inc
* Raises share buyback program to $500 mln from $200 mln
* Shares rise 3 pct
Sept 6 Oilfield services provider Oil States
International Inc said it sold its casing and tubing
business to a private company for $600 million, a day after
activist investor Jana Partners LLC disclosed a higher stake in
Oil States expects to use the proceeds to fund its increased
share repurchase program and to repay debt. The company on
Friday raised its share buyback program to $500 million from
Shares of the company rose 3 percent to $96.88 in late
morning trade on the New York Stock Exchange.
Oil States said the sale would help it invest in its
accommodations, well-site services and offshore products
The company said in May it was considering spinning off its
accommodations business, which provides housing for energy
industry workers in remote locations in Canada, the United
States and Australia.
Oil States sold the business to Marubeni-Itochu Tubulars
America Inc, a unit of Japan's Marubeni-Itochu Steel.
Marubeni-Itochu Steel is jointly owned by trading houses
Marubeni Corp and Itochu Corp.
Jana Partners, headed by Barry Rosenstein, raised its stake
in Oil States to 11.7 percent from 9.1 percent, according to a
regulatory filing on Thursday.
Oil States' tubular business, Sooner Inc, distributes casing
and tubing used in drilling and completion of oil and natural
gas wells primarily in North America.
Pricing for tubular services fell in 2012 and has remained
depressed this year due to higher imports and rising domestic
Revenue at the business fell 12 percent in the second
quarter, but still accounted for nearly 40 percent of Oasis'
total quarterly revenue of $1.04 billion.