Africa Oil Corporation (AOI.TO) said on Monday that it agreed with BTG Oil & Gas and BTG Pactual Holding S.a.r.l. or BTG Holding, the entity which holds BTG Oil & Gas' interest in Prime Oil & Gas Cooperatief U.A., allowing BTG Holding's amalgamation with a newly created subsidiary of Africa Oil.
As a result, BTG Oil & Gas will receive newly issued shares in Africa Oil.
Post transaction, BTG Oil & Gas is expected to hold around 35 percent of the share capital of the enlarged Africa Oil and create an upstream oil and gas company.
The two companies now have a joint 50:50 ownership of Prime, Africa Oil's investee company with deep-water assets located offshore Nigeria. As of now, Prime accounts for 100 percent of Africa Oil's reserves and production.
Africa Oil expects the completion of the proposed reorganization to close during or before the third- quarter of 2025.
Roger Tucker, CEO of Africa Oil, said: "The proposed reorganization will enhance our operations, deliver identifiable savings, and increase our capital returns to shareholders on a sustainable basis. We look forward to welcoming our partner BTG Oil & Gas as a shareholder in Africa Oil and its nominees to our board of directors as we work to deliver further value growth."
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