Seplat Petroleum Development Company Plc has announced the acquisition of Eland Oil and Gas Plc, with the sum of 382 British Pounds (N174billion at an exchange rate of N456 to one British Pound).
According to a statement by Seplat, the boards of Seplat and Eland announced that they have reached agreement on the terms of a recommended cash acquisition of the entire issued and to be issued ordinary share capital of Eland by Seplat. The acquisition is to be effected by means of a scheme of arrangement under Part 26 of the Companies Act.
Under the terms of the acquisition, each Eland Shareholder will be entitled to receive N757.20 (166 pence) in cash for each Eland share.
The acquisition values the entire issued and to be issued ordinary share capital of Eland at approximately £382 million (N174billion) on a fully diluted basis, and represents a premium of approximately 28.5 per cent to the closing price per Eland share of 129.2 pence on 14 October 2019 (being the latest practicable date prior to the announcement); a premium of approximately 32.6 per cent to the three-month volume-weighted average price per Eland share as of 14 October 2019 of 125.2 pence; and on a premium of approximately 32.7 per cent to the six-month volume-weighted average price per Eland share as of 14 October 2019 of 125.1 pence.
In addition, Eland shareholders on the register at the close of business on 18 October 2019 will be entitled to receive and retain the interim dividend of 1 pence per Eland share to be paid on 31 October 2019.
Eland Oil & Gas Plc is a Nigeria focused upstream oil and natural gas exploration and production company listed on the AIM in London with operational offices in Abuja, Nigeria and Aberdeen, Scotland. In September 2012, Eland purchased a 45% interest in OML 40, with its partner Starcrest Energy Nigeria Limited, from the Shell Group. Seplat Petroleum Development Company (SEPLAT) is a Nigerian independent oil and gas company listed on both the London and Nigerian stock exchanges with a strategic focus in the Niger Delta of Nigeria.
Seplat was formed in June 2009 through the partnership of Shebah Petroleum Development Company Limited and Platform Petroleum Joint Ventures Limited to specifically pursue upstream oil and gas opportunities in Nigeria, and in particular divestment opportunities arising out of the incumbent Major IOC’s portfolios.
In July 2010, Seplat acquired a 45 per cent participating interest in and was appointed operator of, a portfolio of three onshore producing oil and gas blocks in the Niger Delta (OMLs 4, 38 and 41) which include numerous producing fields and future development opportunities.
Through the implementation of a focused re-development work programme and extensive drilling campaign Seplat subsequently grew oil production to a peak rate of 85,200bopd and had almost doubled its remaining reserves as at end 2015. In June 2013, Seplat acquired an interest in the Umuseti/Igbuku marginal field area within OPL 283 and in February 2015 acquired interests in OML 53 and OML 55.