Jefferies snares $US2b SNE project mandate, page-4

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Far, Cairn push ahead with Senegal oilfield sale

Jefferies is understood to have a strong presence in the African and European markets..

By

BRIDGET CARTER

MERGERS & ACQUISITIONS EDITOR

@BridgetCarterb

17 MINUTES AGO MAY 9, 2019

Global advisory firm Jefferies has been hired by oil and gas explorer Far Limited and Cairn Energy to sell a stake in the $US3 billion ($4.27bn) SNE development in Senegal.

DataRoom revealed the pair had hired an advisory firm to sell the interest earlier this week.

While the groups are thought to be close to the Royal Bank of Canada, Jefferies is understood to have a strong presence in the African and European markets.

The SNE project based off the coast of the West African country is 15 per cent-owned by Far, while Cairn owns about 40 per cent, and a collective 30 per cent is being sold by the pair.

Far has been trying to embark on capital raisings to fund the project, but the thinking is that selling out all of its interest is now a better option for the listed group.

The other owners are the operator, Woodside Petroleum, which holds 35 per cent, and Petrosen, which is the Senegalese National Oil Company, with 10 per cent.

Flyers have already been sent out to offshore groups, and one party expected to show interest is PTT out of Thailand, with strategic Asian groups said to be the most suitable buyers.

The SNE deepwater oilfield discovery is offshore, 100km south of Dakar.

Far is selling its interest in the SNE project as an ongoing battle for an Australian resources company, Riversdale Resources, came to a conclusion yesterday.

Riversdale confirmed that Gina Rinehart’s Hancock Corporation had gained control of the business, now owning more than 85 per cent.

It is outlaying about $74m for the coking coal miner that owns an asset in Canada and had last year tried to list on the Australian Securities Exchange.

Private equity firm Resource Capital Funds, that owns about 47 per cent of the business, yesterday offered its support for a higher bid by Hancock, which had already secured more than 40 per cent of the company.

While an earlier offer of $2.50 per share for over half of the company had been rejected by RCF, the offer was this month lifted to $2.70 per share for more than 85 per cent.

Riversdale is advised by Macquarie Capital.