4th Nov 2019 11:41
(Alliance News) - Zenith Energy Ltd on Monday said it has formalised an offer to acquire Norwegian oil & gas company Nordic Petroleum AS through an exchange of equity.
Zenith said the proposed acquisition is for a minimum of 90% of the outstanding shares in Nordic with a proposed equity exchange of 1 Zenith share for each 100 Nordic shares held.
The amount of outstanding shares in Nordic is 905 million. Therefore, Zenith said it will issue up to 9.1 million shares.
Zenith shares were trading 2.8% lower in London on Monday at 2.77 pence each, making 9.1 million shares worth about GBP252,000.
Zenith said the unaudited net value of Nordic's equity presently stands at NOK8.8 million, about GBP750,000.
Zenith said it intends to use Nordic as a vehicle to pursue the acquisition of mature energy production assets, as well as for potential participation in future licensing bids organised by the Norwegian Ministry of Petroleum & Energy.
Nordic's primary activities have been in heavy oils in Alberta, Canada. Nordic currently generates no revenue.
"The primary benefits of the Norwegian subsidiary acquisition include establishing a presence in Norway which will enable us to significantly enhance our market exposure and attract further support from long-term Norwegian institutional investors, as well as the ability to participate in Norwegian energy projects via our subsidiary," explained Zenith Chief Executive Andrea Cattaneo.
By Evelina Grecenko; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.
Related Shares:
Zenith Energy