UK-listed Premier Oil has informed that its takeover of E.ON’s North Sea assets has been classified as a reverse takeover under the listing rules.
According to a definition on Investopedia, the reverse takeover is a type of merger used by private companies to become publicly traded without resorting to an initial public offering.
Premier said on Thursday that necessary steps were being taken to prepare information for publication regarding E.ON’s UK North Sea business to restore the listing.
Premier’s ordinary shares remain suspended from trading on the London Stock Exchange, pending clarification from the UKLA on the status of the proposed acquisition of E.ON’s UK North Sea assets.
“Discussions with the UKLA remain on-going and there can be no certainty over the period that the shares will remain suspended,” Premier said on Thursday.
To remind, it all started on Wednesday morning when Premier suspended its shares from trading on the London Stock Exchange pending an announcement of a potential acquisition of assets.
Reports about Premier’s target came quickly and the target of acquisition turned out to be E.ON’s UK North Sea assets.
Premier soon confirmed these reports revealing it had agreed to acquire the whole of E.ON’s UK North Sea assets for a net consideration of $120 million plus working capital adjustments. The assets being acquired are located in the Central North Sea, West of Shetlands and the Southern Gas Basin.
Acquired asset interests include a 5 percent share Elgin-Franklin field, operated by Total; Huntington oil field, where Premier’s interest will increase to 100%, Babbage field, where Premier will take operatorship with 47% stake, and Tolmount, one of the largest discoveries in the Southern Gas Basin in recent years with estimated gross resources of 200Bcf-1Tcf, with 50% and operatorship.
Offshore Energy Today Staff