Global law firm Norton Rose Fulbright has advised Tullow Oil plc (Tullow) on the US$180 million sale of assets in West Africa to Panoro Energy ASA (Panoro).
Tullow has signed two separate sale and purchase agreements with Panoro for the sale of its assets in Equatorial Guinea and the Dussafu asset in Gabon. The US$180 million consideration for the asset sales consisted of up to US$105 million for the Equatorial Guinea Transaction, up to US$70 million for the Dussafu Transaction and a further US$5 million to be paid after both transactions have completed.
The sale of Tullow’s assets in Equatorial Guinea constitutes a Class 1 transaction for Tullow under the UK Listing Rules and will require the publication of an FCA approved circular and the approval of Tullow’s shareholders. Panoro is listed on the Norwegian Børs and is financing the acquisitions by a combination of debt and a US$70 million equity fundraising. Completion of both transactions and receipt of funds is expected in the first half of 2021, subject to satisfaction of certain transaction conditions, including Tullow and Panoro shareholder approvals.
Hussain Kubba, corporate partner who led on the deal, commented:
“The combination of debt and equity financings needed for these transactions added levels of complexity to the advice we were required to give. We are delighted to have advised longstanding client, Tullow Oil plc, on these important disposals, which are in line with the group’s long term strategy.”
The deal team was led by partners Hussain Kubba (corporate, M&A), Fiona Millington (public M&A, equity capital markets) and Neha Khosla (banking and finance) and also included senior associates Nariman Ertem and Matthew Eccles and associate Jarrett Whitehead (corporate, M&A); senior associate Alexander Green and associates Laura Vasey and Stephanie Notice (public M&A, equity capital markets); and senior associate Tom Meredith (banking and finance). Further assistance was provided by Paris-based partner Simon Cudennec and counsel Véronique Bruel.