Seplat Petroleum Development Company, on Tuesday, December 10, 2019, said it has completed the acquisition bridge facility refinancing and canceled the US$350m revolving credit facility to fund the cash consideration payable to participants of the Eland Share Schemes pursuant to the Acquisition.
The Revolving US$350m Bridge Facility Agreement for the Credit Facility entered into with Citibank, N.A., London Branch “prior to the announcement of the acquisition, is no longer required and has been canceled,” according to a statement to the Nigerian Stock Exchange (NSE) by Mrs. Edith Onwuchekwa, Seplat’s Company Secretary.
Citi, as financial adviser to Seplat, the statement noted, “is satisfied that the necessary financial resources are available to Seplat to enable it to satisfy in full the cash consideration payable to Scheme Shareholders (and participants in the Eland Share Schemes) under the terms of the Scheme.”
The statement recalled that on October 15 2019, the boards of Seplat and Eland announced an agreement on the terms of a recommended cash acquisition by Seplat of the entire issued and to be issued ordinary share capital of Eland to be implemented by way of a court-sanctioned scheme of arrangement under Part 26 of the Companies Act
This was followed on November 20, 2019, by the court meeting and the general meetings which were held at which the resolutions to approve the scheme were duly passed by the requisite majorities.
The Scheme is expected to take effect on 17 December 2019.