Seplat Energy Trades Flat Amidst Shares Re-Admission
Dual-listed company, Seplat Energy Plc, traded flat in the equities segment of the Nigerian Exchange (NGX) last week amidst re-admission of the company’s shares in the local bourse.
Seplat has raised its production capacity with acquisition of Mobil asset. Hence, investors are anticipating better future earnings as the company begins process of full integration of operations.
According to information obtained from the local bourse, Seplat Energy market value settled at N3.354 trillion, spread over its 588.444 million shares outstanding in the equities market. The energy company stock ended the week at N5,700 per share following a brief delisting from London Stock Exchange.
Last week, Seplat said its entire issued share capital of 588,444,561 ordinary shares was readmitted in the Official List of the UK Financial Conduct Authority.
Seplat started trading on the main market for listed securities of the London Stock Exchange on Friday, according to regulatory filing. Its shares were delisted on FCA UK lists following the completion of the acquisition of Mobil Petroleum Nigeria Unlimited.
The company acquired Mobil Producing Nigeria Unlimited for $800 million, though the deal was previously for an initial $1.28 billion. Seplat deposited $128 million in 2022, which means the outstanding consideration payable is now $672 million.
The remaining balance will be fully funded from cash and debt facilities, and no new equity will be raised to finance the deal, analysts at CardinalStone partners Limited said, citing information from the company’s conference call.
For the acquisition, the company plans to draw down $350 million from its existing Revolving Credit Facility (RCF), $300 million from its Advance Payment Facility and utilise cash of $22 million, CardinalStone said in a note.
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