Thailand's PTT Exploration & Production (PTTEP) has obtained a £950 million financing to back its proposed acquisition of Africa-focused explorer Cove Energy.
UBS is providing the £950 million financing which is structured as a one-year bridge loan. The agreement was signed on May 23rd.
Funds are borrowed via 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 Mozambique government approval.The offer by PTTEP will also be partly funded by cash, according to PTTEP and Cove.
PTTEP and Cove announced on May 23 that they had agreed on the terms of a recommended cash offer by PTTEP AI which values Cove at about £1.22 billion.
PTTEP's offer trumps Royal Dutch Shell's earlier $1.8 billion offer for Cove issued on May 2nd. Despite this, Shell said it is extending the closing date for the offer until June 13th. Noting the recent PTTEP announcement, it said it "is currently considering its options and will make a further announcement if appropriate".
Reuters
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