San Leon Energy, a London-listed oil and fuel explorer, is on the point of a $185m cope with a US-based investor that may allow it to take management of a key Nigerian pipeline asset.
Sky News has learnt that San Leon, shares through which have been suspended since July pending the publication of its annual outcomes, may announce the funding from Tri-Ri Asset Management as quickly as this week.
Banking sources stated the deal was anticipated handy Tri-Ri an preliminary stake within the firm of roughly 10%.
Its funding is being made at a value of 30p-per-share – virtually twice the extent at which the inventory was suspended.
Tri-Ri would then transfer to a holding of roughly 25%, with warrants to extend that stake nonetheless additional by new warrants within the firm, the sources added.
The deal is claimed to have the backing of Toscafund Asset Management, which owns a 75% stake in San Leon.
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One trade analyst stated shareholders had been now more likely to be assured that San Leon may in the end obtain a $1bn valuation, with a further itemizing in Abu Dhabi anticipated to type a part of its plans.
One supply stated the proceeds from the funding could be used to attain majority possession of ELI, a pipeline in the end able to dealing with day by day flows of 100,000 barrels of oil.
A beforehand agreed construction to spend money on San Leon was terminated by the corporate’s board, in accordance with a inventory trade announcement on Monday afternoon.
San Leon declined to remark, whereas Toscafund has been contacted for remark.
Source: information.sky.com”