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November 4, 2020

Premier Oil creditors approve merger with Chrysaor Holdings

Premier Oil has announced that it had received the ‘requisite level of support’ from its creditors for the proposed all-share merger with Harbour Energy’s UK operating company Chrysaor.

By Himaja Ganta

Premier Oil has announced that it had received the ‘requisite level of support’ from its creditors for the proposed all-share merger with Harbour Energy’s UK operating company Chrysaor.

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Premier Oil has also received approval for the reorganisation of its ‘existing finance arrangements with those creditors entering into a binding support letter’.

Last month, Premier Oil signed an agreement with Chrysaor regarding the proposed merger.

The deal is expected to create the largest independent oil and gas company listed on the London Stock Exchange (LSE), with combined production of over 250,000 barrels of oil equivalent per day (boepd).

Premier Oil said in a statement: “Under the support letter the creditors have, among other things, irrevocably undertaken to vote in favour of the court-approved restructuring plans, and have agreed to waive Premier’s financial covenants until completion of the transaction.

“As such, the merger agreement between Premier, Harbour, funds managed by EIG and Chrysaor has been released from escrow.”

The reverse takeover deal will ensure that Premier’s creditors are paid $1.23bn in cash.

Premier Oil noted that the transaction is expected to be completed in the first quarter of next year.

Chrysaor shareholders will have at least a 77% ownership with Premier shareholders, taking up to 5.45% of the combined group. Other Premier stakeholders will make up the rest of the ownership.

Harbour Energy, Chrysaor’s largest shareholder, will own approximately 39% of the combined entity.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
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  • Consumer context
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