Vallares Confirms Merger With Genel, Deal Reinstates Hayward's Leadership

Thursday, September 8, 2011

  • The deal marks a comeback for Hayward in a leadership role of one of the most promising energy firms in the world
  • Vallares to issue $2.5bn (£1.3bn) worth equity for 50% stake in the company
  • Genel has its hold on proved and probable reserves of 356m barrels, part of Kurdistan's enormous hydrocarbons potential, with an estimated 40bn barrels of oil waiting to be tapped

Former BP head Tony Hayward's investment vehicle Vallares has announced merger with Turkey's Genel Energy International marking a comeback for Hayward in a leadership role of one of the most promising energy firms in the world. The all-shares deal, will see Vallares issue $2.5bn (£1.3bn) worth equity for 50% stake in the company.

According to Hayward the deal would allow Vallares to tap into "one of the last great frontiers in the oil and gas industry."

"Arguably, it is the last big onshore 'easy' oil province available for exploration by private companies anywhere in the world," he said.

Hayward who left BP following the Deepwater Horizon disaster will be the new CEO of Genel Energy PLC, the resultant new name for the merged companies.

Mehmet Sepil, Genel's current CEO, who was fined £1 million for insider trading in 2010 will get a "key executive role" with a 14.5% stake.

Genel has its hold on proved and probable reserves of 356m barrels, part of Kurdistan's enormous hydrocarbons potential, with an estimated 40bn barrels of oil waiting to be tapped.

Article Tags Turkey East Europe Acquisitions & Mergers Deepwater

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

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