Savannah Steps up Nigeria’s Seven Energy Acquisition Plan
By Dipo Olowookere
UK-based firm, Savannah Petroleum, has secured a partnership deal with a Bahraini fund manager, which invests on behalf of the Islamic Development Bank, ASMA Capital Partners, to raise equity capital for the acquisition of assets of a Nigerian company, Seven Energy International Limited.
Last week, Savannah said it intends to raise $250 million through the issue of new ordinary shares of £0.001 each in the capital of the company by way of a placing with institutional investors to fund, inter alia, the cash consideration portion of the company’s proposed acquisition of certain of the Nigerian oil and gas assets of Seven Energy International Limited.
In another statement this Monday, Savannah said it had formed a strategic partnership with ASMA Capital Partners regarding a potential investment of up to $90 million for new Ordinary Shares at the Placing Price, including (i) an initial $30 million to be invested shortly after the completion of the Placing; and (ii) for a period of 24 months following the completion of the Placing, the Investors will have the right to subscribe for an additional $60 million of new Ordinary Shares at the Placing Price.
Savannah said it intends for its Placing from institutional investors to now raise up to $220 million.
According to the statement, “The parties have agreed to work in good faith to progress and execute the Proposed Investment. The current expectation is that Savannah and the Investors will enter into the required documentation (including but not limited to subscription agreements or some similar form) within 30 days (or such later date as the parties may agree) of the Company’s shareholder general meeting to be convened in due course to approve the Placing and the Agreed Transaction.
“The Proposed Investment is subject to completion of final due diligence, the signature of definitive documentation in form and substance satisfactory to the Investors and each Investors’ relevant internal approvals, including but not limited to final investment committee approval.”