Seplat to acquire Exxon Mobil’s stake in Nigerian subsidiary with $550m loan

Seplat Energy will use the $500 million loan facility to complete the acquisition of Mobil Producing Nigeria Unlimited from Exxon Mobil Corporation.

Ripples Nigeria gathered that Seplat has reached an agreement with the United States investor to complete a deal worth $1.283 million plus $300 million contingent consideration for a substantial stake in its Nigerian subsidiary.

Exxon Mobil decided to sell its shallow water business to Seplat as it gradually exit Nigeria along with Shell and Chevron Corporation.

Nigerian investors are queuing up to buy the assets of these International Oil Companies (IOCs) and ABC Orjiako-owned Seplat will dip its hands into a new $550 million senior term loan facility to takeover Exxon Mobil’s stake in Mobil Producing Nigeria Unlimited.

READ ALSO: Another oil giant exits Nigeria as Seplat acquires Mobil Oil from US investor, Exxon Mobil

It is also depending on the $275 million junior offtake facility to finance the deal, which is still subject to ministerial consent and other regulatory approvals.

The loans are obtained from Nigerian and International banks

“The acquisition will be financed through a combination of existing cash resources and credit facilities of the Group, a new $550 million senior term loan facility and $275 million junior offtake facility from Nigerian and International banks,” Seplat said in a statement on Tuesday.

Seplat Energy ended the year 2021 with debt of $766.6 million, but with $340.5 million cash in bank, its total debt is placed at $426.1 million.

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