Africa Oil Corp., an established stock-listed company, announced on Monday its intention to purchase as much as 8 percent of Impact Oil and Gas Ltd's issued shares from minor shareholders.
A cash proposal of US$0.728 has been offered for each share of Impact, amassing to a potential total expenditure of around US$64 million. This figure suggests a full valuation of US$805 million for Impact's entire issued share capital. Presently, Africa Oil owns a 31.1% stake in Impact.
However, this prospective share acquisition is subject to the successful finalization of the downsizing deal for Impact's assets in Namibia, announced on January 10, 2024. The offer has been extended to selected minor shareholders and remains open for acceptance until April 5, 2024. Africa Oil clarifies that it is not compelled to purchase a specific quantity of Impact shares.
Commenting on the scenario, Dr. Roger Tucker, CEO of Africa Oil, asserted that the downsizing agreement significantly heightens Impact's investment appeal for their corporation. Maintaining exposure to the Venus development poses no initial costs while offering considerable potential for future gains on Blocks 2912/2913B. He admits their anticipation for Venus to considerably increase Africa Oil's reserves and production from the late 2020s extending into the 2030s.
