Kuwait Energy scheme of arrangement sanctioned, takes effect March 21

By Caroline Salls

Pittsburgh, March 22 – Kuwait Energy plc’s scheme of arrangement took effect on Thursday, with payment to former shareholders expected to be dispatched within 14 days, according to a news release.

Kuwait Energy said it reached an agreement on Sept. 24, 2018 with United Energy Group on the terms of an all cash acquisition of the entire issued share capital of Kuwait Energy by United Energy wholly owned subsidiary Gold Cheers Corp. Ltd.

The scheme, which implements the acquisition, was sanctioned on March 20.

Because the completion of the acquisition occurred earlier than previously anticipated, Kuwait Energy said the consideration to be paid under the transaction has been upwardly revised to $477.29 million, which equates to a per-share price of $1.464119.

“I am pleased to report that with the completion of this transaction the board of Kuwait Energy have fulfilled their shareholder mandate by providing a liquidity event and returning value to our shareholders,” outgoing chief executive officer Abby Badwi said in the release.

“This journey although a lengthy one, having begun in December 2017, has now become a fruitful one.”

United Energy chairman Zhang Hongwei said in the release “We are hopeful that we shall maximize the potential of our newly acquired assets and add value to benefit the stakeholders associated with our operations such as our employees, our local communities and the governments that host us. We look forward to building a strong, high-performing business that can rival any international company in the region.”

In addition, Kuwait Energy said its entire board of directors has resigned, and a new board has been appointed. The new directors are Zhang Hongwei, Zhang Meiying, Zhu Junfeng, Song Yu and Lin Yang.

“This corporate transaction and shareholder liquidity event, I feel is the best option for all our stakeholders,” outgoing Kuwait Energy chairman Mansour Aboukhamseen said in the release.

“The purchaser of the company and their newly appointed board will inject into Kuwait Energy new ideas, capital and expertise – necessary for the company to reach its potential.”

Kuwait Energy is an independent oil and gas company.

© 2015 Prospect News.
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