Kosmos Energy, a Dallas-based oil and gas firm, has announced that it is no longer interested in acquiring all the shares of Tullow Oil Plc, an independent Africa-focused oil and gas firm.
“Kosmos Energy can now confirm that it does not intend to make a firm offer for Tullow at this time,” Kosmos revealed this in a statement issued on Tuesday, 17th December 2024.
As a result of not making a firm offer, Kosmos Energy said it is bound by the restrictions set out under Rule 2.8 of the Takeover Code.
Rule 2.8 of the Takeover Code is designed to prevent companies from making misleading or confusing statements about potential takeovers.
It would be recalled that Tullow Oil, in a statement on 12th December 2024, confirmed media reports that it is in a preliminary discussion with Kosmos Energy regarding the possible all-share offer by Kosmos Energy.
Tullow, in a circular to its investors, announced that Kosmos Energy has up to January 9, 2025, to announce a firm takeover intention before 5 pm on that day.
“The deadline can be extended with the consent of the panel on takeovers and mergers in accordance with the rule on takeovers,” Tullow said.
Responding to Kosmos Energy’s decision to withdraw its planned acquisition, Tullow Oil, in a statement on Tuesday, said its Board remains confident in Tullow’s stand-alone business.
“Tullow is well positioned to optimise its capital structure, and it continues to progress plans to address its remaining debt maturities, following receipt of the outcome on the Branch Profits Remittance tax arbitration.
“Tullow has been informed by the ICC that it has received the draft decision from the arbitration tribunal and the ICC is now undertaking its customary final review. The company expects to be notified of the results of the award imminently and further updates will be made in due course,” the company said.
Source: https://energynewsafrica.com
