Premier Oil PLC Restoration of Trading (5747N)
February 01 2016 - 1:06AM
UK Regulatory
TIDMPMO
RNS Number : 5747N
Premier Oil PLC
01 February 2016
PREMIER OIL PLC
("Premier" or "the Company")
Update on Proposed Acquisition of E.ONs UK North Sea Assets and
Restoration of Trading
1 February 2016
On 13 January 2016, Premier announced that it had agreed to
acquire the whole of E.ON's UK North Sea assets for a net
consideration of $120 million plus completion adjustments. The
proposed acquisition, which will be funded from existing cash
resources, adds immediate cash generative production, realises tax
synergies on Premier's current c.$3.5bn UK tax loss position and is
accretive to lending covenants.
On announcement of the transaction, Premier's ordinary shares
and public bonds were suspended from trading on the London Stock
Exchange at the Company's request. The aggregate of the
consideration and the expected completion adjustment was, at that
time, sufficient to classify the transaction as a reverse takeover
under the Listing Rules.
Premier and E.ON have now agreed to reduce the completion
adjustment to $15 million and the aggregate consideration for the
transaction payable by Premier to $135 million. This is a result of
an increase of the dividend paid to E.ON prior to completion. The
sale and purchase agreement has been amended to reflect the revised
agreement.
On the basis of this lower aggregate consideration, the
acquisition has been classified as a Class 1 transaction. We have
requested that Premier's ordinary shares and 5% listed bonds resume
trading on the London Stock Exchange from 7.30am on Monday 1
February 2016.
As a Class 1 transaction, the proposed acquisition will be
subject to approval by Premier's shareholders. Premier intends to
publish a shareholder circular and notice of meeting in due course,
with a shareholder vote to follow during March/April. The proposed
acquisition is also subject to the approval of Premier's US Private
Placement noteholders and lending banks.
Enquiries
Premier Oil plc
Tel: 020 7730 1111
Tony Durrant, CEO
Richard Rose, Finance Director
Bell Pottinger
Tel: 0203 772 2500
Gavin Davis
Henry Lerwill
This information is provided by RNS
The company news service from the London Stock Exchange
END
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