Swala, Orca agree on new bond closing

What you need to know:

  • The company announced that it agreed with the Orca Exploration Group Inc to acquire up to 40 per cent of Orca’s wholly-owned Mauritius subsidiary, PanAfrican Energy Corporation for a total consideration of up to $130 million.

Dar es Salaam. Swala Oil and Gas (Tanzania) plc has agreed with Orca Exploration Group Inc to extend the closing of the previously announced investment by the company in the Orca.

The company announced that it agreed with the Orca Exploration Group Inc to acquire up to 40 per cent of Orca’s wholly-owned Mauritius subsidiary, PanAfrican Energy Corporation for a total consideration of up to $130 million.

Tanzania Petroleum Development Corporation (TPDC) had asked the firm to put the transaction on hold as the state-run institution analysed the possible impacts of the deal. Swala – the first oil and gas exploration company to be listed on the Dar es Salaam Stock Exchange said in a statement yesterday that the time in which the deal must be completed changed from June 29 to July 13, 2018.

“The extension to the second and third closing dates has been necessary because of the preferred change of listing venue. The company understands that the listing process of the corporate bonds on the Stock Exchange of Mauritius is close to completion,” the company stated.

Swala submitted its application to list its planned $50 million (with Greenshoe rights) corporate bond issue on the Dar es Salaam Stock Exchange (DSE) to the Capital Markets and Securities Authority.(CMSA) in January 2018 and withdrew it early May 2018.

Alternatively, the company decided to list the bonds on the Stock Exchange of Mauritius with the assistance of GFin Corporate Services Ltd.