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Tullow secures funds
Posted on Friday, 17 March 2017 15:22
UK oil and gas explorer Tullow Oil has announced a GBP 607.00 million rights issue in order to reduce debt and enhance financial and operational flexibility.
The business is placing 466.93 million stocks, representing a 33.8 per cent stake in the group’s enlarged capital, at GBP 1.30 each.
Shareholders will be entitled to 25 scrips for every 49 already held.
The deal is subject to stockholder approval on 5th April 2017, with the units expected to be admitted to trading on 25th April 2017.
Barclays Bank, JP Morgan, Morgan Stanley, BNP Paribas and Credit Agricole Corporate & Investment Bank, among others, have all been hired to advise on the cash call.
Tullow claims to be a leading independent oil and gas, exploration and production group and is quoted on the London, Irish and Ghanaian stock exchanges.
The firm, which previously known as DMWSL 291, generated revenue of USD 1.27 billion in the 12 months ended 31st December 2016, a 21.1 per cent decline on USD 1.61 billion in the previous year.
Net loss after tax totalled USD 597.30 million for the period, narrowed from a loss of USD 1.04 billion in FY 2015.
Last year, Tullow unveiled a convertible bonds offering worth USD 300.00 million to help finance capital investment in its assets in West and East Africa.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 24 deals targeting UK crude petroleum and natural gas extraction groups announced worldwide so far 2017, with the acquisition of Shell’s UK North Sea assets being the largest.
Chrysaor Holdings agreed to pay USD 6.70 billion for the operations in January in an acquisition which is expected to close in the second half of 2017.
Other targets include Sound Energy, Sterling Resources and Hurricane Energy.
© Zephus Ltd