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Aker Energy could float later this year or in 2020: executive
Posted on Thursday, 18 July 2019 13:48
Aker’s chief executive has told Reuters that Aker Energy is waiting for Ghana to approve a revised USD 4.40 billion plan of development and operations (PDO) for the country’s Pecan oilfield before kicking off an initial public offering (IPO).
Oeyvind Eriksen said he would guess a listing could come “late 2019 or during the course of next year” and noted a capital raising would not be postponed due to volatility in the oil and gas market.
Aker Energy submitted a PDO at the end of June and, while it is difficult to predict the government process, expects approval and a final investment decision in the second half of 2019.
Parent Aker and Resource Group TRG have funded the offshore Ghana oil and gas operator since inception but have maintained they would invite other investors to take part through an IPO or other capital market transaction.
In the first step along this path, Aker Energy announced ten days ago it has entered into an agreement to issue convertible subordinated bonds worth USD 100.00 million to Africa Finance Corporation (AFC).
The securities will be exchanged into equity in the event of a flotation at an agreed discount to an offering price of 1.8 per cent per year and will be part of the financing for the Deepwater Tano Cape Three Points block.
As part of the agreement, AFC has also received warrants with the right to subscribe for USD 50.00 million to USD 100.00 million-worth of shares in Aker Energy in any upcoming equity offerings.
The institution also intends to take part in other capital market activities initiated by the oil and gas exploration and production company in the future.
TRG, which is owned by Norwegian billionaire businessman Kjell Inge Røkke, contributed NOK 389.00 million (USD 45.32 million) to Aker Energy in the first half of 2019 – initially provided as short-term loans that were converted to equity.
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