Fossil Energy – Acquisition
UK North Sea oil producer Serica Energy has agreed to buy Tailwind Energy.
The consideration for the acquisition comprises the issue of up to 111,048,124 new ordinary shares in Serica, and a cash payment on Completion of £58.7 million.
Following the issue of the Consideration Shares, they will represent up to 28.9 per cent of Serica’s enlarged issued share capital
On the basis of the Serica closing price as of December 19, 2022 of 278 pence per share this would be equivalent to £367 million.
Serica will also be taking on Tailwind’s net debt, which as at November 30, 2022, was around £277 million.
As part of the Transaction, Mercuria, the largest ultimate shareholder of Tailwind, will become a strategic investor in Serica with a 25.2 percent holding. Two Mercuria nominated non-executive directors will join the Serica board on completion.
All current Tailwind employees will be offered positions in the enlarged group.
