Shareholders of Eland Oil & Gas Plc have given overwhelming backing to the £382 million takeover of the company by indigenous oil & gas producer, Seplat Petroleum Development Company Plc.
At two meetings of shareholders on Wednesday 20 November, resolutions in favour of the proposed takeover of Nigeria-focused Eland were approved by 99.9 per cent of votes cast. Subject to court approval, the takeover is expected to become effective on 17 December 2019.
The cash takeover announced in October provided recognition of Eland’s achievement in building a successful exploration, development and production business in Nigeria. Seplat has the financial and technical capacity to develop Eland’s assets and will deliver long-term benefits for employees, partners, host communities, and Nigeria as a whole. As a leading indigenous operator, Seplat understands the critical role it must play to drive a positive socio-economic impact among its communities. With their knowledge of Eland’s producing assets and operations, Seplat’s management team will efficiently integrate them into its existing portfolio.
On announcement of the deal Seplat acknowledged the importance and value of the skills and experience of existing Eland employees who built the company’s success, stating that the combination of the two businesses will result in a wider range of capabilities, as well as underpin Seplat’s ambition to be the leading independent E&P in Nigeria.
“We are glad to have contributed immensely to the growth of the Nigerian oil and gas industry,” commented George Maxwell, CEO of Eland. “Eland has, in a period which has seen a significant cyclical downturn in our industry, outperformed most of its peers and the London AIM Oil & Gas Index. We are proud to say that Eland has contributed greatly to helping the Federal Government achieve its mission of growing local participation in the sector.”
On 23 October 2019 the condition requiring a joint notification made by Seplat and Eland to the Nigerian Department of Petroleum Resources, notifying the Nigerian Minister of Petroleum Resources of the Acquisition and the acquisition of interests by Seplat in Eland, was deemed satisfied.
The condition requiring a joint notification made by Seplat and Eland to the Nigerian Federal Competition and Consumer Protection Commission, notifying the Nigerian Federal Competition and Consumer Protection Commission of the Acquisition, was deemed satisfied on 12 November 2019.