Categories: Business

Seplat to acquire ExxonMobil share capital at $1.3bn

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Seplat Energy Plc a leading Nigerian energy company listed on the Nigerian Exchange and the London Stock Exchange has entered an agreement to acquire the entire share capital of Mobil Producing Nigeria Unlimited, Exxon Mobil Corporation for a purchase price of $1.3billion ($1,283 million)

This includes up to $300 million contingent consideration which is subject to lockbox, working capital and other adjustments at closing, relative to the effective date.

In a release obtained by the Nigerian Tribune, dated 25th February and signed by Mr Emeka Onwuka Chief Financial Officer, Seplat, the transaction encompasses the acquisition of the entire offshore shallow water business of ExxonMobil in Nigeria,” which is an established, high-quality operation with a highly skilled local operating team and a track record of safe operations, producing 95 kboepd (W.I.) in 2020 (92% liquids).”

It said the cash consideration payable under the transaction will be funded through a combination of existing cash resources and credit facilities of Seplat Energy, with a new $550 million senior term loan facility and $275 million junior offtake facility.

Also, it said this include global financing syndicate comprising Nigerian and international banks, as well as commodity
trading companies.

“Contingent payments, if materialized on Brent oil price annual average above $70/bbl, will be funded through the share of net cash flows from operations,” it said.

Details later …

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