Thursday, August 31, 2017

PanAfrica, Swala discuss share acquisition

ABDUEL ELINAZA
PANAFRICA Energy parent company, Orca Exploration, has confirmed discussions with Swala Oil and Gas regarding a possible minority investment in the Orca Group.
Orca, a British Virgin Islands registered firm, said in a release that there are discussions going on for possibility of Swala—listed on Dar es Salaam Stock Exchange—to acquire minority investment in PanAfrican Energy Corporation (PAEM), registered in Mauritius.

Orca Chairman and Chief Executive Officer, W. David Lyons welcomed Swala’s minority participation in the Orca Group. “Orca has for some time sought the right partner for a minority stake in the Orca Group and we welcome Swala’s ability to attract and engage Tanzanian investors.
The Chairman and CEO said such an investment was strategic to Orca in underpinning the intrinsic value of their business and providing a platform from which to grow and diversify our company.
Orca, however, warned that “there are no assurances” that discussions will lead to a definitive agreement. “…And any such agreement is expected to be subject to Swala securing necessary financing as well as a number of other conditions,” the statement said.
Orca further said there are no assurances that such conditions will be satisfied. “Any investment by Swala,” the statement said, “if concluded, is not expected to affect the management or operation of the company’s operating subsidiary, PanAfrican Energy Tanzania Limited (PAET).”
PAET will continue to be a wholly-owned subsidiary of PAEM, and the many benefits accruing to Tanzania from the Orca Group’s involvement in the SongoSongo project.

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