- VAALCO Energy and TransGlobe Energy Corporation (TGL) have signed an agreement for a combination deal valued at US$307 million.
- The agreement entitles VAALCO to acquire all of the outstanding common shares of TransGlobe in a stock-for-stock strategic business combination transaction
- Upon completion, VAALCO stockholders will own about 54.5 percent and TransGlobe shareholders will own about 45.5 percent of the two companies combined as one
- VAALCO is a USA-based, independent energy company
- TransGlobe Energy Corporation is a cash flow-focused oil and gas exploration and development company
- TransGlobe Energy Corporation opened the day’s trading at $4.13
VAALCO Energy and TransGlobe Energy Corporation (TGL) have signed an agreement which entitles VAALCO to acquire all of the outstanding common shares of TransGlobe.
The stock-for-stock transaction is valued at US$307 million.
The agreement stipulates that VAALCO will acquire each TransGlobe share for 0.6727 of a VAALCO share of common stock, representing a 24.9 per cent premium based on the companies’ respective 30-day volume weighted average share prices as of market close on July 13, 2022.
Upon completion, VAALCO stockholders will own about 54.5 percent and TransGlobe shareholders will own about 45.5 percent of the two companies combined as one.
The combination of the two companies will create a world-class African-focused E&P company that supports sustainable growth and stockholder returns and provides benefits to the combined company’s stockholders and other stakeholders.
Also, the transaction will bring together two complementary businesses, thereby creating an operated, full-cycle portfolio of low-risk, high return assets under a production and development-oriented business model.
Furthermore, with increased scale and broader geographical operations, it is expected that the combined company will be well positioned to benefit from additional targeted inorganic growth in Africa, with reference to strict strategic, financial and operational criteria;
“This combination results in a financially stronger company with no net debt, significant cash on the balance sheet and the size and scale to better fund and execute on a robust set of organic opportunities while delivering accretive long-term growth objectives,” said George Maxwell, VAALCO’s Chief Executive Officer.
“We believe this transaction is mutually beneficial for the broader stakeholders of both companies and reinforces the ability of the combined company to deliver on those commitments,” noted Randy Neely, TransGlobe’s President and Chief Executive Officer.
VAALCO is a USA-based, independent energy company with production, development and exploration assets in the West African region.
TransGlobe Energy Corporation is a cash flow-focused oil and gas exploration and development company whose current activities are concentrated in the Arab Republic of Egypt and Canada.
TransGlobe Energy Corporation opened the day’s trading at $4.13.