State-owned energy company Pertamina has completed the acquisition of French oil and gas company Maurel & Prom. Pertamina acquired Maurel & Prom after buying 47,916,026 units (24.53 percent) of the company's shares from Pacifico.
The acquisition process began in 31 July 2016, when Pertamina and Pacifico signed an acquisition deal. The takeover of Pacifico's stake in Maurel et Prom was completed on 25 August, with a transaction value of € 201.2 million.
Pacifico sold its stake in Maurel & Prom for 4.20 euros per share. But Pertamina must pay an additional 0.50 euro of earn-outs per share, if from 1 January to 31 December 2017 the Brent price goes above US$ 65 a barrel for 90 consecutive trading days.
For the acquisition, Pertamina appointed Crédit Agricole Corporate and Investment Bank as the executive financial advisor and Hogan Lovells as their legal advisor. Meanwhile, BCTG Avocats acted as Pacifico's legal counselor.
Maurel & Prom's executives are also offering their entire shares to Pertamina Internasional Eksplorasi dan Produksi (PIEP). The offering is made through the French stock exchange authority with two schemes. The first is to offer under the same conditions as the deal with Pacifico, and the second scheme is to issue bonds with the same value of the shares plus the interests paid in 2019 and 2021. (Read: Pertamina's First Half Profit Soars 221% on Efficiency Measures)
The offering process is expected to be completed at the end of this year. Maurel&Prom's board of directors have agreed to support the offer and plan to recommend the shareholders to tender their shares to Pertamina as well.
In accordance with applicable regulations, Maurel & Prom's board of directors will deliver its definitive opinion on the tender offer once it has obtained the fairness opinion from Ledouble, the company's appointed independent expert.
Pertamina Finance Director Arief Budiman said the company has earmarked € 1 billion to increase its stake in Maurel & Prom. "It is our entrance to Gabon, Tanzania and African countries that still have a lot of potential," he said in Jakarta, Thursday (25/8).
Maurel & Prom's Board of Directors have also appointed Denie S Tampubolon to represent Pertamina as the company director. Denie replaces former director Emmanuel de Marion de Glatigny, who resigned. (Read: Pertamina Joins Hands with Petronas for Exploration, LNG)