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PTTEP gets $1.49bn to back Cove buy.

Thailand's PTT Exploration & Production (PTTEP) has obtained a 950 million pound ($1.49 billion) financing to back its acquisition of Africa-focused explorer Cove Energy, according to a copy of the facility agreement on Cove's website.

UBS is providing the 950 million pound financing which is structured as a one-year bridge loan. The agreement was signed on May 23.

Funds are borrowed via PTTEP Offshore Investment Co Ltd and guaranteed by PTTEP and Cayman Island-incorporated PTTEP Africa Investment Ltd (PTTEP AI). PTTEP AI is the unit making the offer.

The acquisition is still subject to Cove shareholder acceptances and Mozambique government approval.

The offer by PTTEP will also be partly funded by cash, according to PTTEP and Cove.

UBS is financial adviser to PTTEP, while Standard Chartered Bank is advising Cove.

PTTEP and Cove announced on May 23 that they had agreed on the terms of a recommended cash offer by PTTEP AI which values Cove at about 1.22 billion pounds ($1.9 billion).

PTTEP's offer trumps Royal Dutch Shell's earlier $1.8 billion offer for Cove. Despite this, Shell said it is extending the closing date for the offer until June 13. Noting the recent PTTEP announcement, it said it "is currently considering its options and will make a further announcement if appropriate".

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Publication:Oil & Gas News
Date:Jun 5, 2012
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