Ambitious liquefied natural gas (LNG) hopeful Gasol has revealed terms for its £63 million planned acquisition of African LNG.
Ambitious liquefied natural gas (LNG) hopeful Gasol has revealed terms for its £63 million planned acquisition of African LNG.
AIM-quoted Gasol, at which ex-BG Group luminary Soumo Bose took over as chief executive from the entrepreneurial Haresh Kanabar last October, is paying in shares for the 80 per cent it does not already own of African LNG, the company handling its West African projects. Theo Oerlemans, chairman of African LNG, is to become non-executive chairman of the enlarged Gasol in a deal that will more than double Gasol’s stock market value and give African LNG’s vendor, African Gas Development Corporation (AFGAS), 63 per cent of the new group.
Bose claims the takeover will bring Gasol ‘a number of LNG business development opportunities in sub-Saharan Africa and will thus position Gasol to become the premier Africa-focused gas independent’. Gasol shares, which soared from 3.62p to 15.38p between 2005 and early 2006 before subsequent faltering, have returned from pre-deal suspension with a 1.25p gain to 12.75p (valuing the company at £26.2 million) and could make further progress.
