Business
Recommended Acquisition
Recommended Acquisition.
About this update from Gulf Keystone Petroleum Limited
[{"type":"text","content":"\n Gulf Keystone Petroleum Ld\n13 April 2007\n\n\nGulf Keystone Petroleum Limited\n13 April 2007\n\n\nNot for release, publication or distribution in or into jurisdictions other than\nthe United Kingdom and Bermuda where to do so would constitute a contravention\nof the relevant laws of such jurisdiction\n\n\n\n\nRecommended acquisition of Gulf Keystone Petroleum Limited by RAK Petroleum PCL\n\n\n\nGulf Keystone (AIM: GKP) is an independent oil and gas exploration company\noperating in the Republic of Algeria.\n\n\n\nSummary\n\n\n\n• The board of directors of Gulf Keystone, RAK Petroleum and RAK\nBermuda, a wholly owned subsidiary of RAK Petroleum, announce the terms of a\nrecommended acquisition of Gulf Keystone by RAK Petroleum to be effected by way\nof an amalgamation of Gulf Keystone with RAK Bermuda.\n\n\n\n• Under the terms of the proposed Amalgamation Gulf Keystone\nShareholders will receive:\n\n\n\n\n For each Gulf Keystone Share 74 pence in cash\n\n\n\n\n\n• At the Amalgamation Consideration of 74 pence per Gulf Keystone Share,\nthe value of the issued and to be issued Gulf Keystone Shares (including Gulf\nKeystone shares that may be issued under the Gulf Keystone Executive Bonus\nScheme) to be cancelled pursuant to the Amalgamation, together with the Cash\nCancellation Consideration for other Gulf Keystone Options, is approximately\n£208 million.\n\n\n\nBackground to the Amalgamation\n\n\n\n• Notwithstanding the success of Gulf Keystone in building its portfolio\nof assets within Algeria, the Directors believe that for a company of Gulf\nKeystone's size and resources, the generation of future cash flow and the\nrealisation of the full potential of the Company's portfolio in a timely and\npredictable manner will continue to be challenging given the operational\nenvironment in which it is working.\n\n\n\n• The Amalgamation Consideration represents a premium of approximately:\n\n\n\n• 17.5 per cent. to the average Closing Price of approximately 63.0\npence per Gulf Keystone Share for the one month period ended on 5 February 2007,\nbeing the last dealing day prior to the date of Gulf Keystone's announcement\nthat it was in discussions which may or may not lead to an offer being made for\nthe whole of the issued and to be issued share capital of the Company;\n\n\n\n• 20.9 per cent. to the average Closing Pric...