Business
Proposed Strategic Partnership
Proposed Strategic Partnership.
About this update from Savannah Energy Plc
[{"type":"text","content":"\n \nRNS Number : 6282Z Savannah Petroleum PLC 18 December 2017 \n\nNOT FOR RELEASE OR DISTRIBUTION OR PUBLICATION IN WHOLE OR IN PART IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, HONG KONG, JAPAN, NEW ZEALAND OR SINGAPORE\n \n18 December 2017\nSavannah Petroleum PLC\n(\"Savannah\" or the \"Company\")\n \nProposed Strategic Partnership and up to US$90m Equity Investment\n \nAs was announced by Savannah on 14 December 2017, the Company intends to raise up to US$250m through the issue of new ordinary shares of £0.001 each in the capital of the Company (\"Ordinary Shares\") by way of a placing (the \"Placing\") with institutional investors to fund, inter alia, the cash consideration portion of the Company's proposed acquisition of certain of the Nigerian oil and gas assets of Seven Energy International Limited (the \"Agreed Transaction\").\nIn addition to the Placing and the Agreed Transaction, Savannah now announces the formation of a strategic partnership with an investment group led by ASMA Capital Partners B.S.C.(c) (\"ASMA\") (\"the Investors\") regarding a potential investment of up to US$90m for new Ordinary Shares at the Placing Price, including (i) an initial US$30m to be invested shortly after the completion of the Placing; and (ii) for a period of 24 months following the completion of the Placing, the Investors will have the right to subscribe for an additional US$60m of new Ordinary Shares at the Placing Price (\"Proposed Investment\"). As such, Savannah intends for its Placing from institutional investors to now raise up to US$220m.\nThe parties have agreed to work in good faith to progress and execute the Proposed Investment. The current expectation is that Savannah and the Investors will enter into the required documentation (including but not limited to subscription agreements or some similar form) within 30 days (or such later date as the parties may agree) of the Company's shareholder general meeting to be convened in due course to approve the Placing and the Agreed Transaction. The Proposed Investment is subject to completion of final due diligence, the signature of definitive documentation in form and substance satisfactory to the Investors and each Investors' relevant internal approvals, including but not limited to final investment committee approval. \nASMA is the manager of IDB Infra...