Fosun backs USD 500m bid from Bert Cooper for Afren
Fosun, a Chinese conglomerate controlled by the Chinese businessman Guo Guangchang, is backing a USD 500m (EUR 446m) bid for Afren headed by the UK-listed oil company’s co-founder Bert Cooper, The Sunday Times reported. The newspaper did not cite a source for the claim.
The China-Africa Development Fund is also backing Cooper’s proposal, the item said.
Cooper and the Chinese groups would take a majority stake in Afren but would keep its stock exchange listing, the article continued. However, the report said the bid stands little chance of success, as Afren’s lenders are in control of the company and have put together a rescue deal of their own.
As previously reported, Blackstone is advising a committee representing 40% of the USD 860m of Afren bonds.
The California-based investment firm Pimco and Ashmore, a UK-based fund manager have proposed a USD 300m deal that would avert putting Afren into administration but would leave the company’s shareholders with nothing, the report continued. It is understood that the deal involves swapping debt for equity, giving Pimco, Ashmore and other bondholders a majority stake in Afren, the newspaper said.
Under Cooper’s proposal, Afren’s lenders would need to accept a substantial haircut on their bonds, the report said. However, it is thought that those lenders would prefer to recapitalize Afren themselves rather than take a loss, the item added.
The report noted that an extension to a repayment on USD 50m of Afren debt expired on Friday, 27 February.
Afren’s market capitalisation stood at GBP 95.3m at the close of trading in London on Friday.
Sunday Times