Nigerian oil producer Seplat agrees £382m tie-up with Eland

Takeover of Aberdeen-based rival to increase scale of business in West Africa

                                

Nigerian oil operator Seplat Petroleum is buying Eland Oil and Gas for £382 million ($482 million) , subject to shareholder approval, the companies have agreed.

Aberdeen-based Eland, which also focuses on Nigeria and West Africa, will receive 166 pence per share in cash, a premium of approximately 28.5 per cent.

At the close of business on October 18 Eland Shareholders will be entitled to retain an interim dividend of 1p per Eland Share to be paid on October 31.

Eland stocks rose by 28 per cent on news of the deal, which will be financed via Seplat’s existing cash resources and a new loan facility.

The acquisition will be put to Eland shareholders at the Court Meeting and at the General Meeting and must be approved by shareholders representing at least 75 per cent of the company’s value, voting in person or by proxy. The deal is expected to become effective later this year.

Seplat is an independent oil and natural gas producer in the Niger Delta which supplies processed natural gas to the domestic market. It has been listed on both the Nigerian Stock Exchange and the London Stock Exchange since April 2014.

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