LONDON, Nov 3 (Reuters) - A sufficient number of creditors
of indebted Premier Oil have approved a proposed merger
with private equity backed Chrysaor to create the British North
Sea's biggest oil and gas producer, Premier said on Tuesday.
The reverse takeover, which will see Premier's creditors
paid $1.23 billion in cash, will fold one of the world's oldest
independent producers into a private equity-backed group in
which Premier shareholders will receive an expected 5.45% stake.
Premier had $1.9 billion in net debt.
"(Premier) has received the requisite level of support from
each class of its creditors for the proposed merger of Premier
and Chrysaor Holdings Limited and the reorganisation of
Premier's existing finance arrangements," it said.
"Premier will launch the restructuring plan processes
through... a practice statement letter, immediately after the
Prospectus for the Transaction is published, which is currently
anticipated by the end of 2020. The Transaction is expected to
complete by the end of Q1 2021."
Premier shares were up 9% at 0923 GMT at 12.48 pence.
Chrysaor's largest shareholder, Harbour Energy, is expected
to own just over 39% of the merged company, which will stay
listed on the London Stock Exchange.
The two groups combined will produce around 270,000 barrels
of oil equivalent per day, topping majors such as BP in
the basin.
(Reporting by Shadia Nasralla; Editing by Kirsten Donovan)
BP (BP.)