Palliser Advises Capricorn to Quit Merger Deal with Tullow

Palliser Advises Capricorn to Quit Merger Deal with Tullow

Palliser Capital has advised Capricorn Energy to quit its proposed merger with Tullow Oil, Reuters reported.

It described the deal as “one-sided” and short of “meaningful strategic rationale”. Palliser said that “the Proposed Merger appears to us to be a poorly disguised nil-premium takeover of Capricorn by Tullow.”

“We firmly believe that Capricorn’s standalone value is at least 330 pence per share – representing a 50% upside to the current share price and implying that the Proposed Merger represents a value give-away of over $500 million,” it added.

The company explained that this deal would negatively affect Capricorn’s ESG profile by increasing its oil-gas output ratio.

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