Thai firm gets £950m for Cove bid
THAILAND’S PTT Exploration Production (PTTEP) has obtained £950 million financing to back its proposed acquisition of Africa-focused explorer Cove Energy.
UBS is providing the £950 million (about €1.18 billion) financing, structured as a one-year bridge loan. The agreement was signed on May 23rd. Funds are borrowed through PTTEP Offshore Investment Co Ltd and guaranteed by PTTEP and Cayman Island-incorporated PTTEP Africa Investment Ltd (PTTEP AI). PTTEP AI is the unit making the offer.
The acquisition is still subject to Cove shareholder acceptances and the approval of the Mozambique government. The offer by PTTEP will also be partly funded by cash.
PTTEP and Cove announced on May 23rd that they had agreed on the terms of a recommended cash offer by PTTEP AI, which values Cove at £1.22 billion.
PTTEP’s offer trumps Royal Dutch Shell’s May 2nd offer of $1.8 billion for Cove. Despite this, Shell said it was extending the closing date for the offer until June 13th. Noting the PTTEP announcement, it said it “is currently considering its options and will make a further announcement if appropriate”. – (Reuters)