The boards of Tullow Oil and Capricorn Energy have reached agreement on the terms of a recommended all-share merger.
Under the terms of the combination, each Capricorn shareholder will be entitled to receive 3.8068 new Tullow shares for each Capricorn share, ultimately holding 47% of the company.
A statement explained that the deal "represents a unique opportunity to create a leading African energy company, listed in London, with the financial flexibility and human resource capability to access and accelerate near-term organic growth, add new reserves and resources cost-effectively, generate significant future returns for shareholders, and pursue further consolidation".
