This entry is sourced from VAALCO's Exhibit 99.1 press release filed as part of an 8-K on February 29, 2024, announcing the signing of the sales and purchase agreement. The release explicitly marks the announcement as containing inside information. The acquisition had not yet closed as of this filing; closing was expected in the second quarter of 2024, with ultimate timing dependent on final receipt of all necessary approvals.
Stifel acted as sole financial advisor to VAALCO. Svenska Petroleum Exploration AB retained Evercore Partners International LLP and GKA Advisors LLP as financial advisers.
Mayer Brown International LLP acted as legal counsel to VAALCO. Fieldfisher LLP acted as legal counsel to Svenska (the source text is truncated after naming Fieldfisher but clearly attributes it as Svenska's legal advisor alongside the two named financial advisers).
The gross consideration for the acquisition was $66.5 million, subject to customary closing adjustments, with an effective date of October 1, 2023. The purchase price was to be funded partly by a pre-closing dividend of cash on Svenska's own balance sheet to the seller, with the remainder funded from VAALCO's cash on hand, with no issuance of debt or equity. VAALCO estimated net cash due at closing would be in the range of approximately $30 to $40 million, depending on timing. (A later, separate 8-K filed April 30, 2024 confirmed the acquisition had closed, with a net purchase price of $40.2 million fully funded by cash on hand.)
The release does not disclose the identity of the seller of Svenska (i.e., Svenska's prior ownership), a termination fee, or the specific fee arrangements for Stifel, Evercore Partners International, GKA Advisors, Mayer Brown, or Fieldfisher. Reserve estimates for the Baobab field interest and other transaction highlights are referenced in the release but are described using non-GAAP reserve metrics not independently verified here.