Australia's Kinetiko acquires remaining 51% of Afro Energy
Australia-listed Kinetiko Energy has executed binding agreements to acquire the remaining 51% of Afro Energy it did not already own from Badimo Gas, it announced on September 4.
The acquisition will be completed by the issuance of 72.22mn shares in Kinetiko to T10 Holdings, an investment company, at a price of A$0.09/share. The total value of this acquisition is $6.5mn ($4.2mn). Kinetiko originally owned 49% of Afro, which holds the South African exploration rights and production approvals linked to its assets.
In order to complete the merger, a condition was the facilitation by Kinetiko of a A$6.5mn sell-down of consideration shares. With the execution of a binding funding commitment, all conditions precedent to the merger can be satisfied, and Kinetiko anticipates it will formally close the acquisition of 100% of Afro Energy in the coming weeks. The deal to acquire the remaining 51% stake was originally announced in December 2021.
Afro has assets in the Mpumalanga province and is currently drilling a well in the Secunda gas field. The acquisition of Afro will give Kinetiko a significant presence in the South African gas market. The company will now have a portfolio of exploration and production assets, as well as the ability to develop and commercialise gas projects.
"The acquisition of Afro Energy is a major milestone for Kinetiko. It will give us a significant presence in the South African gas market and the ability to develop and commercialise gas projects. We are excited to work with T10 and Badimo to bring these assets to production and help to meet South Africa's growing energy needs,” Kinetiko CEO Nick de Blocq said.
T10 Holdings is a South African investment company that invests in a variety of energy projects, including gas exploration and production.