Tullow Oil merges with Capricorn in $827 mln all-share deal – Reuters

  • Date: 02-Jun-2022
  • Source: Reuters
  • Sector:Oil & Gas
  • Country:Gulf
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Tullow Oil merges with Capricorn in $827 mln all-share deal – Reuters

June 1 (Reuters) - Tullow Oil (TLW.L) and Capricorn Energy (CNE.L) agreed to merge in an all-stock deal worth 656.9 million pounds ($826.7 million) that will deliver dividends after a payout drought and improve cash flow to allow investment in higher output.

Investors in Capricorn, formerly known as Cairn Energy, will receive 3.8068 new shares in Tullow, the bigger of the two companies, for each share they hold, the companies said on Wednesday. Reuters calculated the $827 million value of the deal based on Tuesday's closing share price.

Tullow boss Rahul Dhir will lead the combined group, which will be majority-owned by Tullow shareholders.