Wednesday, 03 January 2018 06:38 Tanzania’s Swala Oil and Gas has announced to buy up to 40 per cent stake in Orca Exploration Group’s PAE PanAfrican Energy Corporation (PAEM) for US$130mn
The deal aims to support the country’s goal to develop oil and gas sector in the region. (Image source: John R Perry/Pixabay)
The deal is expected to provide Swala part ownership of PAE's Tanzanian subsidiary, which holds exploration and production rights for natural gas in the Songo Songo block, in partnership with the Tanzania Petroleum Development Corp.
According to Swala, the transaction will include issuing 16.3mn preferred shares to Orca, which is subject to shareholder approval at the company’s upcoming annual general meeting.
The acquisition financing has been arranged by Exotix Capital, a London-based specialist frontier markets investment bank. Tanzanian, East African and international investors will be accessed in January for a second tranche fundraising via a new Tanzanian bond and additional tapping of the 144A US$ bond.
Speaking about the agreement, Dr David Mestres Ridge, CEO of Swala, said, “This arrangement ultimately results in the benefits of more than 20 per cent of Orca’s Tanzania business being indirectly owned by Tanzanian shareholders and bondholders, providing an alternative mechanism for local participation alongside traditional listings on the DSE, and the recirculation of funds into the Tanzanian economy.”
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The deal aims to support the country’s goal to develop oil and gas sector in the region. (Image source: John R Perry/Pixabay)
