MON DEC 09 2024-theGBJournal| Seplat Energy Plc Monday announced the publication of a prospectus in connection with the acquisition of the entire issued share capital of Mobil Producing Nigeria Unlimited (MPNU).
”The publication of the prospectus marks an important milestone towards completion of the transaction, and other key elements of the transaction are at an advanced stage of completion,” Seplat Energy said in a statement.
The announcement follows the receipt of approval from the Financial Conduct Authority (FCA).
The transaction, which is expected to complete on 12 December 2024 is transformative for Seplat Energy, more than doubling production to around 120,000 barrels of oil equivalent per day and providing the Company with a significant opportunity to further drive its growth and profitability, whilst contributing significantly to the Nigerian economy.
These assets, according to Seplat, are of proven quality, located in one of the world’s leading hydrocarbon basins.
The Final cash consideration payable to ExxonMobil at closing of the deal is $672 million-($128 million deposit paid in 2022 at first SPA signing; Total consideration at closing $800 million; and Fully funded from available cash and debt facilities, no new equity issuance required.)
The transaction, announced on 25 February 2022 with an effective date of 1 January 2021, was for an initial consideration of $1.283bn, with up to $300m in contingent payments) payable over a period of five years (commencing 1 Jan 2022), and other customary closing adjustments.
Seplat said it will host a conference call for investors and analysts on the day of completion.
The leading Nigerian energy company is listed on both the Nigerian Exchange and the London Stock Exchange.
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