United Energy Group to acquire Kuwait Energy for USD 651 mn
M&A WATCH- United Energy Group to acquire Kuwait Energy for USD 651 mn: Hong Kong-listed energy firm United Energy Group has made a USD 651 mn bid to acquire Kuwait Energy, United Energy said in a filing to the Hong Kong stock exchange, Reuters reports.
Egypt assets among those that enticed United: The move comes as United Energy looks to expand in the Middle East. Kuwait Energy has operations in several countries, including Egypt, Iraq, Yemen and Oman, United Energy said.
Background: Reports of the acquisition come two months after Kuwait Energy reportedly hired investment bank Perella Weinberg Partners to advise on possibly divesting its stakes in Egypt and Iraq. Talks for a possible merger with the UK’s SOCO International earlier this year had reportedly had fallen apart. The firm, which lost its CEO and saw a credit downgrade last year, owes USD 290 mn due next year, and should start repayments of a convertible loan of around USD 150 mn this year to an entity controlled by private equity group Abraaj. Soco said last week it would acquire Egypt-focused oil driller Merlon.