Exploration company Tullow Oil has confirmed recent speculation that it is considering an offer to acquire Energy Africa for $500m.
Tullow issued the statement following the suspension of trading in its shares in Dublin and London this morning. The size of the deal means trading must be halted temporarily.
The company has already signed agreements with shareholders representing 90% of Energy Africa's share capital. This allows Tullow an exclusive period of negotiations.
Tullow says the would be in cash, with a share alternative. A 'substantial part' of the offer would be financed by a new debt facility, with the rest through new equity.
Energy Africa is a South African oil company whose majority shareholder is the Malaysian national company Petronas.
