(Alliance News) - FTSE 250-listed Energean Oil & Gas PLC on Monday said it does not expect discussions with Algeria to affect its acquisition of Edison's exploration and production unit.
In July, Energean agreed to buy the oil exploration and production arm of Italian electricity and natural gas company Edison SpA for USD850 million.
On Monday, Energean said Algeria had yet to give its approval for its takeover of Edison's Algerian assets - part of the agreed purchase of Edison E&P.
"Energean notes that Edison has received a letter from the Algerian authorities, which invites Edison to discuss the transaction with Sonatrach," Energean said.
Sonatrach is the national state-owned oil company of Algeria. Alongside Italy's Edison, Sonatrach wants to discuss the status of its gas assets amid the planned takeover of Edison's entire upstream business by Energean.
Discussions are ongoing between Energean and Edison to determine any requirement for amendments to the takeover deal, the UK-listed firm said. In addition, Energean and Edison are working to agree an appropriate settlement on the total consideration to take into account any exclusion of the Algerian Asset from the transaction perimeter, Energean added.
As such, Energean said it does not expect the Algerian discussions to hinder its ability to close the transaction on the remaining assets in the Edison E&P portfolio.
"The required government approvals have already been obtained from UK, Norway, France and Greece. Approvals from Italy and Egypt are anticipated in the near future. Energean is working to complete the Edison E&P acquisition as soon as is possible in 2020, subject to the approval of its shareholders and the other relevant governments," the company said.
Energean Oil shares were up 1.1% at 920.00 pence in London on Monday afternoon.
By Arvind Bhunjun; arvindbhunjun@alliancenews.com
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