Tanzania- 40 percent stake in Orca Exploration Group’s PAE PanAfrican Energy Corp has been bought by Tanzania’s Swala Oil and Gas for $130 million, Swala said.
The deal will give Swala part ownership of PAE’s Tanzanian subsidiary, which holds production and exploration rights for natural gas in the Songo Songo block, in partnership with the Tanzania Petroleum Development Corp.
Swala said the deal will include the issue of 16.3 million preferred shares, worth $16.3 million, to Orca, if shareholders approve. It will also take on PAE Tanzania’s debts worth another $24 million, Swala said.
David Mestres, the CEO of Swala, said in a statement”It is the first deal of this magnitude between a foreign and a Tanzanian company,”
Funding for the deal was arranged by Exotix Capital, a London-based specialist frontier markets investment bank.