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Seplat Energy PLC on Monday said it has received approval from the UK Financial Conduct Authority for its reverse takeover of Mobil Producing Nigeria Unlimited. The Nigeria-focused energy supplier said it expects the acquisition to complete on Thursday. Seplat said the final cash consideration payable to Exxon Mobil Corp is $672 million, making a total consideration of $800 million. This is fully funded from cash and debt facilities with no new equity funding. A further $257.5 million is deferred to December 2025 covering decommissioning, abandonment and some joint venture costs. Seplat said the deal will create Nigeria’s leading independent energy company. The acquisition is classed as a reverse takeover under the UK FCA rules, which means the company’s shares will be cancelled and require relisting. Under these rules, Seplat published its prospectus for the deal on Monday. The company said the transaction will more than double production to 119,800 barrels of oil equivalent per day on a pro forma basis. Working interest production averaged 47,525 boepd for the nine-month period to the end of September. It also said revenue will multiply to $1.46 billion on a pro forma basis from the first half of 2024 and adjusted earnings before interest, tax, depreciation and amortisation would reach $800 million in the same period. Shares in Seplat Energy were down 18% to 171.00 pence in London on Tuesday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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