United Energy Group to acquire Kuwait Energy for US$500 million

Kuwait Energy (KE) has announced that it has reached an agreement with United Energy Group on the terms of an all cash acquisition of the entire issued share capital of KE by UEG. Under the terms of the deal,  the consideration comprises approximately US$491 million for the current issued share capital of KE on a fully diluted basis, which is anticipated to equate to approximately US$1.50 per share. The consideration is subject to adjustment in certain circumstances and so the price per share paid at completion may be less or more than the anticipated price.

The Board of KE, which has been advised by Tudor Pickering Holt & Co. as to the financial terms of the acquisition, considers the terms of the acquisition to be fair and reasonable. In providing its advice to the Board of KE, TPH has taken into account the commercial assessments of the Board of KE.

It is intended that the acquisition will be implemented by way of a court sanctioned scheme of arrangement further details of which will be announced on the company’s website. The Board of Directors intend to unanimously recommend that KE shareholders vote in favour of the scheme at the court meeting and the resolutions to be proposed at the shareholder general meeting. The Chairman and CEO who hold KE shares have irrevocably undertaken to vote in favour of the scheme at the court meeting and the resolutions to be proposed at the shareholder general meeting.