(Alliance News) - Energy sector investor Kistos PLC on Tuesday said it plans an equity raise to go towards its EUR222.8 million acquisition of Tulip Oil Netherlands BV.
London-based Kistos first announced plans for the deal back in March. Tulip Oil Netherlands is focused on offshore gas field exploration in the Dutch North Sea.
The EUR222.8 million deal with sellers Tulip Oil Holding BV includes EUR60 million in cash and the issue of EUR15.8 million of shares to Tulip Oil Holding. The deal will also see Tulip Oil Netherlands issue EUR60 million worth of bonds to Tulip Oil Holding, while a EUR87 million bond refinancing makes up the rest of the acquisition fee.
Tulip Oil will become a shareholder and debt holder of Kistos, upon completion of the deal.
To help fund the deal, Kistos will sell shares to raise up to GBP52.5 million at 155 pence per share. The accelerated bookbuild will be launched immediately and led by Panmure Gordon Ltd.
Kistos shares were suspended from trading in March as the deal is classed as a reverse takeover.
"I am delighted to be announcing the acquisition, and the associated fundraising, this morning," commented Chair Andrew Austin.
"This represents the culmination of many months of work and is, in my view, a hugely exciting development for stakeholders in Kistos. The portfolio of assets that we have acquired include profitable and cash generative producing assets, plus exploration and appraisal assets from which we are looking to deliver significant upside for our shareholders."
A general meeting will be held on May 14 to seek approval to proceed with the acquisition.
By Will Paige; willpaige@alliancenews.com
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Kistos Holdings (KIST)