Lagos — Seplat Petroleum Development Company Plc has acquired another oil and gas firm, Eland Oil & Gas PLC.
In a notice to the Nigerian Stock Exchange, NSE on Tuesday, the firm said the acquisition will be effected by means of a Scheme of Arrangement under Part 26 of the Companies Act 2006 Lagos and London.
The Nigerian independent oil and gas company is listed on both the Nigerian Stock Exchange and London Stock Exchange.
The memo to NSE said both parties have reached an agreement on the terms of a recommended cash acquisition of the entire issued and to be issued ordinary share capital of Eland by Seplat.
Under the terms of the acquisition, each Eland Shareholder will be entitled to receive: for each Eland Share 166 pence in cash.
The Acquisition values the entire issued and to be issued ordinary share capital of Eland at approximately £382 million on a fully diluted basis.
Commenting on the Acquisition, George Maxwell, CEO of Eland, said: “This recommended offer from Seplat represents the culmination of a very successful journey by Eland, the management team and all of its stakeholders. Since founding Eland, we have, jointly with our partners in Elcrest, acquired our interests in OML 40, a non-producing asset, achieved an all-time record production on this asset and become a significant independent producer in Nigeria’s E&P landscape and one of the biggest oil producers on London’s AIM market. Eland has, in a period which has seen a significant cyclical downturn in our industry outperformed most of its peers and the AIM Oil & Gas Index. This transaction represents a record share price for Eland and crystallises Eland’s stated goal to maximise shareholder value.”
Commenting on the Acquisition, Dr. Bryant Orjiako, Chairman of Seplat said: “Since Seplat acquired its first blocks and commenced production in 2010, we have increased oil and gas production and grown reserves in each year of operation, delivering significant growth and value for our shareholders. We firmly believe that Eland is a complementary fit with Seplat and that there will be enhanced scale and a wider range of capabilities made available to the enlarged group through the combination. This acquisition signals the next step in our journey that will underpin Seplat’s ambition to be the leading independent E&P in Nigeria.”