Business
Update on Placing and Seven Energy Transaction
Update on Placing and Seven Energy Transaction.
About this update from Savannah Energy Plc
[{"type":"text","content":"\n \nRNS Number : 9530Z Savannah Petroleum PLC 20 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 \n20 December 2017\nSavannah Petroleum PLC\n(\"Savannah\" or the \"Company\")\n \nUpdate on Placing and Seven Energy Transaction\n \nFurther to its announcement of 14 December 2017, Savannah is today providing an update on its proposed placing with institutional investors (the \"Placing\") to fund, inter alia, the revised cash consideration portion of the Agreed Transaction.\n \nUpdate Regarding the Agreed Transaction\n \nAs previously announced:\n \n· in respect of the lock-up agreement entered into by Savannah, the Seven Group and certain of the creditors of the Seven Group (the \"Lock-up Agreement\"), as at the expiry of the lock-up fee deadline, at 5 p.m. (London time) on 12 December 2017, SEFL had received executed lock-up agreements from 90.13 per cent. of the holders of Seven's current 10.25 per cent. Senior Secured Notes (the \"SSNs\"), by value, in support of the Agreed Transaction and the associated proposed financial restructuring of the Seven Group, as announced on 15 November 2017; and\n \n· Seven has notified the Nigerian DPR of the Agreed Transaction and has received a \"Letter of Authorisation to Proceed\" with the same. The letter welcomes Savannah's proposed investment in Nigeria, and paves the way for Seven to submit a formal application for Ministerial consent to effect the Agreed Transaction, which is expected to be made after the execution of the binding implementation agreement relating to the Agreed Transaction.\n \nFollowing the significant support received from holders of the SSNs and the positive correspondence received from the DPR, further discussions have taken place with key stakeholders including certain holders of the SSNs.\n \nAs a result of this, it is now proposed that:\n \n· Savannah intends to raise up to US$125 million through the Placing;\n· consideration of US$42.5 million in cash (previously US$87.5 million) and US$109.5 million in new Ordinary Shares (previously US$52.5 million) will now b...