Business
PROPOSED ACQUISITION OF TAILWIND ENERGY
PROPOSED ACQUISITION OF TAILWIND ENERGY.
About this update from Serica Energy Plc
[{"type":"text","content":"\n \n \n \n \n \n THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION\n \n \n \n \n \n For Immediate Release\n \n \n \n \n \n 20 December 2022\n \n \n \n \n \n \n \n \n \n \n \n SERICA ENERGY PLC\n \n \n \n \n \n PROPOSED ACQUISITION OF TAILWIND ENERGY INVESTMENTS LTD\n \n \n \n \n \n Serica Energy plc (AIM:SQZ, \"Serica\", the \"Company\" or the \"Group\") is pleased to announce that it\n has entered into an agreement to acquire the entire issued share capital of Tailwind Energy Investments Ltd (\"Tailwind\") from Tailwind Energy Holdings LLP (the \"Seller\") (the \"Transaction\"). The consideration for the acquisition comprises:\n \n \n · \n The issue of up to[1] 111,048,124 new ordinary shares in Serica (the \"Consideration Shares\"). Following the issue of the Consideration Shares, they will represent up to 28.9 per cent of Serica's enlarged issued share capital\n \n \n ·\n A cash payment on Completion of £58.7 million (the \"Cash Consideration\")\n \n \n On the basis of the Serica closing price as of 19 December 2022 of 278 pence per share this would be equivalent to £367 million. Serica will also be taking on Tailwind's net debt, which as at 30 November 2022 was c.£277 million[2]. As part of the Transaction, Mercuria, the largest ultimate shareholder of Tailwind, will become a strategic investor in Serica with a 25.2 per cent holding and will enter into a Relationship Agreement with Serica as further described below.\n \n \n \n Transaction Highlights\n \n \n \n \n Significant increase in Serica's scale, portfolio diversity and organic investment opportunities\n \n \n \n ·\n Estimated proforma combined production in 2023 will rise significantly to between 40,000 boe/d and 45,000 boe/d putting Serica in the top 10 UKCS producers and top 3 UKCS listed independent producers\n \n \n · \n Acquiring fully developed 2P reserves of 42 million boe[3] to create a combined portfolio with 2P reserves of 104 million boe[4]\n \n \n ·\n Will create a balanced spread of production from two main hubs - Bruce and Triton - which have separate transportation infrastructure\n \n \n · \n Number of producing fields will increase from 5 to 11 with substantial upside and organic growth opportunities\n \n \n ·\n Enlarged group will operate more than 80 per cent of its net...