Gulf Keystone likely to be subject of reverse takeover by T5 Oil and Gas
T5 Oil and Gas, an Anglo-Irish oil and gas exploration company, is likely to take control of listed UK-based counterpart Gulf Keystone via a reverse takeover, the Irish Examiner reported. The report cited one industry source who said that although oil companies such as Exxon Mobil had been tipped as possible buyers for Gulf Keystone, T5 and Genel Energy were more likely buyers, with T5 the most likely acquirer.
Gulf Keystone will likely pay USD 50m (EUR 47.1m) of its own shares to acquire T5, with T5 using that stake to effectively take control of Gulf Keystone, the item said. T5 would then install its own executives and board at the enlarged group, according to the report.
The source suggested that a tie-up between Gulf Keystone and T5 could be completed before the summer.
T5 head Pat Plunkett yesterday, 10 April refused to say if he thought a deal would be agreed, the article said. Plunkett said there is no progress towards a deal at the moment, but added that T5 is keen to agree a deal. The chairman said the structure of the putative deal would give Gulf Keystone’s current shareholders the opportunity to retain their interest in the enlarged group, which would not be the case in a straight takeover deal. A tie-up would also expand Gulf Keystone’s portfolio, he added.
Gulf Keystone’s non-executive Chairman Andrew Simon earlier this week said the company is continuing to hold talks with potential buyers and is also considering other ways to secure additional funding, the item noted.
As previously reported, Gulf Keystone this week posted a loss after tax of USD 248.2m in FY14, with revenues of USD 38m.
Separately, Plunkett said T5 intends to acquire licences and is looking at companies and assets that require investment. T5 has identified about six potential targets with operations in Africa and the Middle East, Plunkett said.
Gulf Keystone's market capitalisation stood at GBP 381.4m (EUR 526.2m) at the close of trading in London yesterday.
Irish Examiner