The board of Tullow Oil today passed a special resolution to approve the offer by Tullow for South African company Energy Africa and the related issue of up to 274,526,013 new ordinary shares in the share capital of the company.
In a statement the company said the relevant condition of the offer has accordingly been satisfied and Tullow expects the offer will be declared unconditional tomorrow and for a further 14 days.
Application has been made to the UK Listing Authority and to the Irish Stock Exchange for the new ordinary shares to be admitted to the official lists and to the London Stock Exchange to be admitted to trading on its market for listed securities.
It is expected that commencement of dealings in the Placing Shares will be effective from 8.00 a.m. on 28 May and for the offer shares and EAGHL consideration shares, it is expected that Admission and commencement of dealings will be effective from 4 June.
Tullow Oil made the $500m offer Energy Africa earlier this month. Tullow will fund the offer partly by new debt and partly by the issue of 130 million new shares at 95p per share to raise £120m.
Energy Africa is a South African based company with interests in nine African countries. It is over half-owned by Engen, which in turn is 80% owned by Petronas.
Tullow has also agreed to acquire 50% of EAGHL, a joint venture between Energy Africa and APIL, for $70m, which will be paid for by the issue of 41.5 million new shares.
