Independent oil and gas company, Seplat Petroleum Development Company has completed the acquisition process of Aberdeen-based upstream oil and gas exploration and production firm, Eland Oil and Gas PLC.
The recommended cash acquisition deal, which had gone through several phases, reached its high point on Tuesday with the Court Order, sanctioning the scheme of arrangement, delivered to the Registrar of Companies.
This and other details are contained in Seplat’s notice to the Nigerian Stock Exchange (NSE), published on the latter’s website on Tuesday.
Only last Thursday, the firm floated a bridge facility refinancing aimed at funding the deal.
With the deal consummated, Seplat, dual-listed on the NSE and the London Stock Exchange (LSE) has acquired the entire issued and to be issued share capital of Eland Oil and Gas.
Earlier on 28 October, 2019, a scheme document had been posted to the shareholders of Eland.
Austin Avuru, Seplat’s Chief Executive Officer (CEO) said “We are delighted to successfully complete the acquisition of Eland, which further enhances Seplat’s footprint in Nigeria and provides opportunities for enhanced scale, diversification and growth. We welcome our new colleagues and Nigerian partners as we look forward to working together in this exciting phase of our development.”
By reason of the acquisition, trading of Eland shares on Alternative Investment Market (AIM), a sub-market of the LSE, will cease by 7.00 am on 18 December, 2019.
According to the statement, “Scheme Shareholders on the register at the Scheme Record Time, being 6.00 p.m. on 16 December 2019, will receive 166 pence in cash for each Scheme Share. The consideration due to the Scheme Shareholders will be sent by no later than 31 December 2019.”
Eland had two oil licences: OML 40 and Ubima-1 well. The OML 40 is situated in Warri, Delta State while Ubima is located in Ikwerre, Rivers State. The oil licences have automatically become the possession of Seplat through the acquisition deal.
The deal, estimated to be £382 million, has the potential of boosting Seplat’s production and reserves.
Seplat currently sells at the LSE AT £1.14 per share and at the NSE at N549.7 per share.