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Seplat Petroleum Development Company has announced the acquisition of Eland Oil operating in Oil Mining (OML) Lease 40
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 yet-to-be issued ordinary share capital of Eland at approximately £382 million on a fully diluted basis, and represents a premium of approximately 28.5 per cent to the closing price per Eland Share of 129.2 pence on October 14 2019, the latest practicable date prior to the announcement.
A statement from the company read: ‘‘The boards of Seplat and Eland are pleased to announce that they have reached agreement on the terms of a recommended cash acquisition of the entire issued and to-be issued ordinary share capital of Eland by Seplat.
“The Acquisition is to be effected by means of a scheme of arrangement under Part 26 of the Companies Act.”
Further details of the transaction revealed that a premium of approximately 32.6 per cent to the three-month volume weighted average price per Eland Share as of 14 October 2019 of 125.2 pence and a premium of approximately 32.7 per cent to the six-month volume weighted average price per Eland share as of October 14, 2019 of 125.1 pence.
In addition, Eland shareholders on the register at the close of business on October 18, 2019, will be entitled to receive and retain the interim dividend of 1 pence per Eland Share to be paid on 31 October 2019.
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.
Also 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.
In his remarks, Austin Avuru, CEO of Seplat, said: “We are pleased to have reached an agreement to acquire Eland and its portfolio of assets that will enhance our existing operations. Eland is an excellent fit with Seplat and the combination should achieve for us growth and increased profitability, creating value for our shareholders, employees and other stakeholders while offering an attractive upfront premium to Eland Shareholders.
