Swala advances with Orca deal
What you need to know:
- The company agreed with Orca to acquire up to 40 per cent of Orca’s wholly-owned Mauritius subsidiary, PanAfrican Energy Corporation for a total consideration of up to $130 million.
Dar es Salaam. Swala Oil and Gas (T) Plc will not extend the deadline to complete its investment in PanAfrican Energy Corporation - a subsidiary of Orca Exploration Group Inc - as the companies are completing the process.
The company agreed with Orca to acquire up to 40 per cent of Orca’s wholly-owned Mauritius subsidiary, PanAfrican Energy Corporation for a total consideration of up to $130 million.
The companies extended deadline from June 29 to July 13 this year and now Swala says will not extend any more.
“The decision was taken in consideration of the uncertainty in the timing of the regulatory approval of Swala’s prospectus and listing application in Mauritius. The decision not to extend the deadline does not terminate the Swala Investment and Orca continues to support Swala’s efforts in closing its financing. However, Orca may terminate the balance of the Swala Investment at any time,” the company said in a statement.
“The process in Mauritius is advancing at creditable speed but oil and gas is a new investment area and the regulator has spent time thoroughly understanding the Swala prospectus. Our understanding is that the prospectus will be reviewed by the Executive Committee of the Stock Exchange of Mauritius this coming week and are already engaging with Tanzanian and overseas investors in anticipation of an early closing,” stated Swala CEO David Mestres Ridge.
Swala is also listing its planned $50 million (with Greenshoe rights) corporate bond through the Stock Exchange of Mauritius to acquire up to an additional 32.07 per cent of PanAfrican Energy Corporation.
