Page 15 - AfrOil Week 03 2020

AfrOil
NEWS IN BRIEF
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AIIM’s West African Director Olusola Lawson, said: “This deal firmly supports AIIF3’s invest- ment strategy, which targets significant influence investments across the power, transport and midstream energy sectors - three focus verticals across sub-Saharan Africa where AIIM sees the greatest disconnect between the demand for critical infrastructure and available capital for these projects. In Nigeria, estimated peak energy demand is estimated to be over 20,000 MW, but this is only met with less than 5,000 MW of peak supply. This highlights the power demand gap on the national grid, which is partially due to the unavailability of gas to some of the existing generation plants. AIIM’s investments will help to bridge this gap, creating positive impact out- comes for businesses, communities and individ- uals on the ground.”
Andrew Knott, CEO of Savannah Petroleum, said: “We are very pleased to be working with AIIM, as they have an impressive track record in the African power sector. The gas-to-power sector in West Africa is primed for considerable growth over the coming years, so we believe that both Accugas and Uquo offer investors exposure to a fast-growing economy in need of additional power supplies. Both AIIM and Savannah are fully aligned and remain focused on deliver- ing sizeable growth and cash flows at these high-margin assets.”
AIIM is pleased with the deployment of AIIF3 to date, with two thirds of the fund already committed to a diversified portfolio of assets
across the thermal power, renewable energy, ports & logistics and airports sectors. This port- folio of assets provides the fund with exposure to operations across 13 African countries. AIIM has concluded nine other investments through the AIIF3 portfolio, including Starsight Power Utility, a leading off-grid energy company in Nigeria, Albatros Energy, a thermal power IPP in Mali, DSM Corridor Group, a bulk handling facility in Tanzania, and BBOXX a next genera- tion utility platform company.
AIIM, January 16 2020
FINANCE
Anglo African Oil & Gas
announces new strategic
investor, termination of ISA
Anglo African Oil & Gas has consented to the sale, by Riverfort Global Opportunities PCC and YA II PN Ltd, of the remaining 84,041,011 ordi- nary shares of GBP0.001 each in the capital of the company held by the ISA Investors at a price of GBP0.005 per ISA Share (a premium of 43% to the closing share price on January 17, 2020) for a total consideration of GBP420,205.05, of which AAOG will receive GBP361,376.35.
Completion of the sale of the ISA shares will take place today, following which the ISA will be
terminated.
The ISA proceeds will be applied towards
AAOG’s creditors and, alongside the GBP250,000 to be received from Zenith Energy as announced on January 13, 2020, will provide the company with sufficient working capital for the next six months, absent any unforeseen legit- imate claims.
The ISA shares will be acquired by Forum Energy Services. Forum has confirmed that it has no current intention to dispose of its stra- tegic stake in the company and has agreed to a lock-in in respect of 75% of the ISA shares for three months from today’s date.
The company has agreed that Forum shall have the right to appoint up to three directors to the board of the company. Such board appoint- ments are subject to satisfactory completion of regulatory due diligence in relation to the candi- dates proposed. On the appointment of Forum’s first candidate to the board, Phil Beck has agreed to resign his position as non-executive director. The company wishes to express its gratitude to Beck for his contribution to AAOG over the past two years.
The company continues discussions with RiverFort regarding a convertible loan facility. However, the immediate need for, and the poten- tial quantum of any such facility has dimin- ished, given the proceeds from the block sale of ISA shares. Further updates will be provided as appropriate.
Sarah Cope, chair of AAOG, said: “The board has considered several offers to purchase the ISA shares and has, in consenting to the purchase by Forum, given consideration to the long-term interests of the company rather than purely immediate financial gain. The board is confi- dent that of all the potential partners considered, Forum has the clearest vision and best contacts that will enable it to deliver value for sharehold- ers in the long term.”
Paul Forrest, chief executive of Forum, com- mented: “Forum is pleased to have taken a stra- tegic stake in the company and we are looking forward to working with the board to create shareholder value. Forum has, through its inves- tors and network, access to sources of funding as well as exciting and viable projects in the natural resources sector that could be suitable as acqui- sition targets for AAOG.”
Anglo African Oil & Gas, January 20 2020
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