21st Mar 2025 09:08
(Alliance News) - Energean PLC on Friday said it was forced to abandon the planned disposal of oil and gas assets to private equity firm Carlyle.
On Monday, Energean had warned that the sale of its portfolio in Egypt, Italy and Croatia to Carlyle International Energy Partners may fall through. The deal had been announced in June last year, with the USD945 million disposal seen as allowing Energean to focus on its gas fields in Israel and Morocco.
Energean is a London-based energy production, development and exploration company and possesses a portfolio of assets across the Mediterranean and UK North Sea. Carlyle International Energy Partners was formed by private equity firm Carlyle Group to make the acquisition.
Energean on Monday had said some regulatory approvals in Italy and Egypt have not yet been obtained by Carlyle, putting the deal in doubt.
On Friday, Energean said it has terminated the sale agreement and will no longer proceed with the deal. It said the antitrust approvals needed to have been satisfied by Thursday, the longstop date, and Energean was not able to reach agreement with Carlyle to extend that deadline.
Energean Chief Executive Mathios Rigas said that, while he is "disappointed" that the regulatory approvals weren't secured, "this outcome does not change our strategic direction or our commitment to growth and shareholder returns".
A new dividend policy, which previously had been promised upon the closing of the asset sale, will still go ahead, Energean said. This will be announced in planned trading update in May, which also will provide financial and production guidance that includes the Egypt, Italy and Croatia assets, as well as a "forward-plan" for them.
"Italy, Egypt and Croatia will remain core pillars of our operations, and we look forward to driving further investment, development, and value creation in all countries," Rigas said. "Our commitment to the Mediterranean and the wider region is unwavering."
Energean shares were up 4.0% to 875.00 pence early Friday in London. However, they had fallen by 8.0% on Monday, so they are down 14% over the past month.
By Tom Waite, Alliance News editor
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