Seplat is to accumulate London-listed Eland Oil & Gas for £382 million ($486,163,760.00) in an exceedingly bid to scale the business and grow in Federal Republic of Nigeria, in keeping with the boards of the businesses.
The acquisition is to be accomplished by means that of a theme of arrangement below half twenty six of the businesses Act.
Seplat can pay 166 pence per share in money for Eland, or a premium of twenty 8.5 % to Monday’s terms. Shares in Eland climbed 28 % in early commercialism on Tuesday.
Eland’s board has backed the supply, as have its 3 largest shareholders, who have given irrevocable commitments for concerning 60% of the shares within the company.
The acquisition are going to be supported through a mixture of existing money and a brand new loan facility.
According to the businesses, the deal can offer the combined business bigger scale in production and reserves, with the combined boring set to extend to 38,000 barrels of oil per day (boepd) for the enlarged cluster.
Factoring in Seplat’s gas production, total production is predicted to grow to 64,000 boepd.
In interim results discharged in Sept, Eland, supported in 2009, rumored an operative profit of $40 million on record revenues of $106 million, up from $67.4 million within the previous year.
Seplat presently provides a couple of third of Nigeria’s power generation gas.