Savannah Energy to Acquire Petronas Assets in South Sudan for Up to $1.25bn

Savannah Energy (LON: SAVE) revealed on Monday that it has entered into a share purchase agreement with PETRONAS International to acquire PETRONAS' entire oil and gas business in South Sudan.

Savannah will acquire the business via the acquisition of Petronas Carigali Nile Limited in a deal worth up to $1.25 billion.

The transaction is subject to certain conditions, including the approval of the Government of the Republic of South Sudan, the approval of Savannah's shareholders, and re-admission to trading on AIM taking effect. According to AIM rules, the transaction constitutes a reverse takeover and is, therefore, subject to shareholder approval.

Savannah's shares were suspended from trading on AIM this morning, pending the publication of an AIM Admission Document setting out the details of the deal or confirmation that it has been terminated.

If all goes well, Savannah said the transaction will be financed through a combination of the group's available cash resources and debt.

If completed, Savannah would acquire Petronas Carigali Nile Limited's interests in three joint operating companies in South Sudan, with major partners in the joint operating companies, including CNPC, ONGC, Sinopec, and Nilepet, the national oil company of South Sudan.

Savannah Energy closed Friday's session at 26.25p per share, with the stock up more than 16% in 2022. 

In late September, SAVE jumped on the release of its half-year results which saw its revenue and adjusted EBITDA rise 10% year-on-year. However, the company reported a loss before tax of $11.3 million, compared to an H1 2021 profit before tax of $7.7 million.