The Investors Chronicle said22 Dec 2018 16:27
As if its various transactions weren’t already complicated enough, Savannah Petroleum (SAVP) has today announced the acquisition of a further 55 per cent interest in Midstream Accugas, the sale of a 25 per cent stake in the Seven Energy Uquo Gas business and Accugas to Africa Infrastructure Investment Managers for a combined $70m, a revision of term sheets with lenders to Accugas, the proposed acquisition of the Creek Town to Calabar pipeline, and the addition of a new power station customer for Accugas. And breathe. Though the shares are up 12 per cent this morning, Savannah will not receive funds from AIIM, nor access the cash from Seven Energy, until the deal completes. Panmure Gordon analyst Colin Smith believes this factor “is likely to raise increased questions about the company’s funding position and may partly explain the delay in the Niger appraisal programme”.