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Swala Oil and Gas, ORCA on talks over US $130m Pan African investment

Swala Oil and Gas, CEO David Ridge, told Azania Post that they are still on discussions and he cannot predict now on to when they will reach on the conclution.

Swala Oil and Gas, ORCA on talks over US $130m Pan African investment

Swala Oil and Gas, CEO David Ridge, told Azania Post that they are still on discussions and he cannot predict now on to when they will reach on the conclution.

21 August 2017 Monday 14:35
Swala Oil and Gas, ORCA on talks over US $130m Pan African investment

By Felix Andrew

SWALA  Oil and Gas (Tanzania) Plc  has confirmed that are in discussions with  Orca  Exploration  Group  Inc  regarding  an  investment  of  up  to US $130  million  in Pan African Energy (“PAE”), a Mauritius- registered company that is a wholly-owned subsidiary of Orca.

According to Swala Oil and Gas, Chief Executive Officer David Ridge, told Azania Post that they are still on discussions  and he cannot predict now on to when they will reach on the conclution.

The CEO told Azania Post in an interview that the issuance of retail bonds within the EAC and internationally is part of that process.

The  investment  is  envisaged  as  being  structured  in  several  tranches  and  the  Company's  ability  to  complete  such  an investment  will  depend  on  securing  the  necessary  finance  in  each  tranche.

Tranche  1  has  committed  funding  from internationally recognized global  institutional  investors subject to the  completion of legal due  diligence that  is currently ongoing.

The second tranche has been designed to encourage the participation of Tanzanian corpora te bond investors in a manner that aims to maximize their participation alongside that of sophisticated international institutions, in line with the Company's  demonstrated  commitment  to  local  involvement  in  the  natural  resources  sector.

The commencement of the road show associated with this second tranche was advertised to the market on the 10th August 2017

On his part, Orca Chairman and Chief Executive Officer, David Lyons commented: “We would welcome Swala’s minority participation in the Orca Group.”

Orca has for some time sought the right partner for a minority stake in the Orca Group and we welcome Swala’s ability to attract and engage Tanzanian investors.

Such an investment is strategic to Orca in underpinning the intrinsic value of our business and providing a platform from which to grow and diversify our company.

Azania Post

Updated: 21.08.2017 14:49
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