Energean Oil & Gas agreed to purchase the oil and gas enterprise of Electricite de France SA’s Italian unit for $850 million, a deal that will considerably broaden the Greek company’s geographic standing.
Energean will offer $750 million in advance for working assets in Egypt, Italy, Algeria, Croatia, and the North Sea, based on a statement on the Tel Aviv Stock Trade, one of two bourses where it is stock trades. It’s Energean’s first significant purchase since listing in London in 2018, and will considerably develop its production and revenue brooks.
The Greek firm can also be buying assets under development in Egypt, Norway, and Italy. It could pay a further $100 million following first gas from the Cassiopea growth off Italy.
In June, Energean was bidding for the oil and gas enterprise of EDF unit Edison SpA, whose machineries had earlier attracted interest from Neptune Energy and Warburg Pincus’s Apex International Power. EDF was looking for up to $2 billion for the assets, people with information of the matter said in January.
Energean is currently targeted on fields in Greece and Israel, and the acquisition is an expensive move for a corporation of its size. It plans to finance the purchase by selling $265 million of new shares
The shares of Energean rose up to 13% in London and were trading up 10% at 927 pence. EDF shares fell 0.8% in Paris.
Edison will be allowed to royalties associated with additional potential developments in Egypt that would deliver the aggregate worth close to $1 billion, it stated Thursday in a separate assertion. The transaction further consists of the transfer of all of Edison’s future decommissioning responsibilities.