Shareholders of Eland Oil & Gas Plc have given their backing to the £382 million takeover of the company by indigenous oil & gas producer, Seplat Petroleum Development Company Plc.
Resolutions in favour of the proposed takeover of Nigeria-focused Eland were approved by 99.9 per cent of votes cast at two separate meetings of the shareholders held recently.
The acquisition which is subject to court approval is expected to become effective December 17, 2019, according to a statement.
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 would 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 Seplat’s existing portfolio,” the statement explained.
While announcing 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 would result in a wider range of capabilities, as well as underpin Seplat’s ambition to be the leading independent E&P in Nigeria.
The Chief Executive Officer of Eland, Mr. George Maxwell, was quoted in the statement as saying, “we are glad to have contributed immensely to the growth of the Nigerian oil and gas industry.
“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.”
According to the statement, on October 23, 2019, the condition requiring a joint notification made by Seplat and Eland to the Department of Petroleum Resources (DPR), notifying the minister of petroleum resources of the acquisition and the acquisition of interests by Seplat in Eland, was deemed satisfied.
The statement added that the condition requiring a joint notification made by Seplat and Eland to the Federal Competition and Consumer Protection Commission (FCCPC), notifying the commission of the acquisition, was deemed satisfied on November 12, 2019.