EDINBURGH (dpa-AFX) - Tullow Oil plc (TLW.L) announced Wednesday that it has reached agreement on the terms of a recommended all-share merger of equals with Capricorn Energy PLC (CNE.L).
Under the deal terms, each Capricorn Shareholder will be entitled to receive 3.8068 New Tullow Shares for each Capricorn Share.
It is intended that the combination will be implemented by means of a Court-sanctioned scheme of arrangement, where Tullow will acquire all of the issued and to be issued Capricorn Shares.
On completion of the combination, Capricorn Shareholders will hold around 47 percent of the Combined Group and Tullow Shareholders will hold approximately 53 percent.
The board of directors and management of the Combined Group will comprise individuals from both Tullow and Capricorn.
Phuthuma Nhleko, currently Chair of Tullow, will become Chair of the board of the Combined Group, and Rahul Dhir, CEO of Tullow, will become the combined firm's CEO.
James Smith, CFO of Capricorn, will become CFO of the Combined Group.
After almost 11 years as CEO of Capricorn, Simon Thomson will step down as CEO on Completion and will become Chair of the Integration Steering Committee to help with the integration of the two companies.
Following the deal, Tullow's shares will continue to trade on the London Stock Exchange's main market and on the Ghana Stock Exchange.
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