Lagos-based Heirs Energies has entered into a binding agreement to acquire a 20.07% stake in Seplat Energy from Paris-based Maurel & Prom (M&P) for approximately $500 million. The deal, struck at a significant premium to Seplat's market price, has triggered a dramatic near-40% surge in Seplat's stock, pushing it to an all-time high.

Deal Structure and Financials

The acquisition involves 120.4 million shares at a price of £3.05 per share, valuing the transaction at $496 million. Heirs Energies will make an initial payment of $248 million, with the balance due within 30 days and secured by an irrevocable letter of credit. An additional contingent payment of $10 million may be made, dependent on Seplat's share price performance over the subsequent six months.

Strategic Implications for Heirs Energies

This transaction marks a major expansion for Heirs Energies, moving it beyond its sole current asset, OML 17, and providing significant exposure to a wide range of upstream assets through Seplat's established platform. The company's chairman emphasized the deal reflects a belief in Africa's capacity to own and manage its strategic resources and was financed by leading African institutions, Afreximbank and the Africa Finance Corporation, highlighting intra-continental financial capability. This follows closely on a separate $750 million financing arrangement Heirs executed with Afreximbank.

Perspectives from the Parties Involved

Maurel & Prom, a founding and largest shareholder of Seplat since 2010, stated the sale allows it to monetize a successful investment and re-focus capital on direct investments in oil and gas assets to accelerate its growth strategy. Seplat Energy acknowledged the announcement, stating it would provide further updates upon formal regulatory notification.