Energy group Compañia Española de Petroleos (CEPSA) has signed an agreement to acquire the shares of US-based Coastal Energy for C$2.3bn, including C$51m of net debt.
According to CEPSA, the purchase price represents a premium of 28% over the closing price of Coastal’s shares on 18 November.
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The acquisition will be made through a company created by CEPSA and Strategic Global Resources (SRG), where CEPSA will own a majority interest.
CEPSA chief executive officer Pedro Miro said that the acquisition reflects an important step in increasing the company’s exploration and production capabilities.
"Coastal’s business comprises a high-quality portfolio of upstream assets located in Southeast Asia, operated by talented management and dedicated employees," Miro added.
SRG spokesperson Jho Low said: "We are excited to invest with CEPSA in Coastal. With our strong relationships in Asia and CEPSA’s strength in the E&P, we believe we can grow Coastal’s footprint in Asia and further enhance the company’s operations."
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By GlobalDataIf the agreement is terminated in certain circumstances CEPSA is entitled to a termination payment of $76m.
Coastal Energy owns and operates 100% of the oil blocks G5/43 and G5/50 in the Gulf of Thailand and various onshore gas interests in northeast Thailand, including a 13.7% stake in the gas field Sinphuhorm.
The transaction is expected to close in the first quarter of 2014.
Image: Coastal Energy owns onshore gas interests in Thailand. Photo: courtesy of CEPSA.
