BusinessOil & Gas/Mining

Tullow Oil to buy Capricorn Energy for US$827 million in Africa play

Investors in Capricorn, formerly known as Cairn Energy, will receive 3.8068 Tullow shares for each share they hold, and will own 47% of the combined group

West Africa-focused Tullow Oil will acquire Capricorn Energy  in an all-stock deal valued at 656.9 million pounds (US $826.7 million), the London-listed energy groups said on Wednesday, as they focus on the reserve-rich African region.

Investors in Capricorn, formerly known as Cairn Energy, will receive 3.8068 Tullow shares for each share they hold, and will own 47% of the combined group which will be led by Tullow chief executive officer Rahul Dhir.

“The combination represents a unique opportunity to create a leading African energy company, listed in London, with the financial flexibility and human resource capability to access and accelerate near-term organic growth,” the companies said in a statement.

The larger group will have portfolios across countries like Ghana, Egypt, Gabon and Ivory Coast and is expected to be an important supplier of gas in Egypt and in Ghana, the companies said.

They also expect to save US$50 million annually within two years of the completion of the deal, which has been unanimously recommended by the boards of both the companies.

Morgan Stanley and Rothschild & Co were Capricorn’s financial advisers on the deal, while PJT Partners and Barclays advised Tullow.

Asaase Radio 99.5 – tune in or log on to broadcasts online
99.5 in Accra, 101.5 in Bawku, 99.9 in Bimbilla, 100.3 in Cape Coast, 90.7 in Ho, 98.5 in Kumasi, 99.7 in Tamale, 89.5 in Tarkwa and 106.9 in Walewale
Join the conversation. Call: 020 000 9951 or 059 415 7777. Or WhatsApp: 020 000 0995.
#AsaaseRadio
#TheVoiceofOurLand

Source
Reuters
Show More

Related Articles

Back to top button

Adblock Detected

ALLOW OUR ADS