Sinopec to acquire Addax Petroleum for $7.2 billion
24 June 2009
Asia's largest crude refiner, China's state-owned Sinopec hopes to make its largest overseas acquisition by buying Canadian oil driller Addax Petroleum for $7.2 billion.
China Petrochemical Corporation, also known as Sinopec Group has offered C$52.80 a share in cash, which is a 47 per cent premium to the closing price of Addax shares on 5 June, the day prior to Addax Petroleum's public announcement that it was in preliminary discussions with parties regarding a potential transaction. (See: Sinopec in talks to acquire Addax Petroleum for $8 billion)
Chief executive Jean Claude Gandur of Addax, who, personally and through his holding company, Addax & Oryx Group, holds 38 per cent of Addax Petroleum stock, has also offered his stake, through a lock-up agreement.
The Geneva-based oil and gas producer, Addax is one of the largest independent oil producers in West Africa with a number of producing properties in Nigeria and Gabon, exploration and development properties and new venture opportunities in West Africa and the Kurdistan Region of Iraq.
Nearly 75 per cent of Addax's output comes from Nigeria and Sinopec has jointly undertaken two deep-water oil explorations in the Gulf of Guinea with Addax.
Addax produces about 140,000 barrels of oil a day, with most of it coming from West Africa. It also has a 30-per cent interest in the Taq Taq field and a 26.67-interest in the Sangaw North PSC in the Kurdistan region of Northern Iraq.