Seplat acquires UK-based Eland Oil for £383 million
Seplat Petroleum, a Nigerian oil and gas firm, has reached an agreement to acquire Eland Oil and Gas for £383 million. Equally important, Eland Oil is a UK firm based in Aberdeen, Scotland.
The landmark deal is expected to be completed towards the end of the year after which Eland will be delisted from the London Stock Exchange.
Details of the deal indicate that Eland has all but accepted Seplat’s offer. The £383mn all-cash deal has been recommended by Eland’s board. Also, the deal is supported by the company’s three largest shareholders.
It is understood that both businesses will operate as separate entities for a year before a planned merger of both operations.
Seplat and Eland Oil first inked a confidentiality agreement in April 2015. Further, Seplat’s offer represents a 28.5% premium to Eland’s share price on October 14.
In a statement released by the company, Eland disclosed that Seplat had also secured backing for its offer from major shareholders in Eland. These include Helios Natural Resources, Lombard Odier Asset Management (Europe) and Richard Griffiths. In principle, about 60.17% of Eland’s shareholders support the move.
Seplat CEO, Austin Avuru disclosed that the acquisition will position the company for increased growth and profitability.