Tanzania's Swala Oil to buy stake in Orca's PAE in $130 mln deal
Published Jan 02, 2018 07:27
Tanzania's Swala Oil to buy stake in Orca's PAE in $130 mln deal
DAR ES SALAAM, Jan 2 (Reuters) - Tanzania's Swala Oil and Gas SWALA.TZ will buy up to a 40 percent stake in Orca Exploration Group's ORCb.V PAE PanAfrican Energy Corp. for $130 million, Swala said on Tuesday.
When completed, the deal will give Swala part ownership of PAE's Tanzanian subsidiary, which holds exploration and production rights for natural gas in the Songo Songo block, in partnership with the Tanzania Petroleum Development Corp.
Swala said the transaction will involve the issue of 16.3 million preferred shares, worth $16.3 million, to Orca, if shareholders approve. It will also take on PAE Tanzania's debts worth another $24 million, Swala said.
"It is the first deal of this magnitude between a foreign and a Tanzanian company," David Mestres, the CEO of Swala, said in a statement.
Funding for the deal was arranged by Exotix Capital, a London-based specialist frontier markets investment bank.
(Writing by Duncan Miriri, editing by David Evans)
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.