M&A WATCH- United Energy Group acquires Kuwait Energy for USD 651 mn: Hong Kong-listed energy firm United Energy Group has closed its USD 651 mn full acquisition of Kuwait Energy — which has operations in countries including Egypt, Iraq, Yemen, and Oman, according to a press release from Shalakany Law Office (pdf). The transaction wrapped up late March after the target signed the agreement on 23 September last, the law firm said. The move is part of the acquirer’s strategy to push into the Middle East. Shalakany acted as buy-side legal advisor for all Egyptian assets included in the transaction.

Egypt is a significant part of Kuwait Energy: Kuwait Energy’s Egyptian assets — in Borg El Arab, Abu Sennan, East Ras Qattara, and on the tip of the eastern desert — account for a significant portion of the company’s total oil and gas production figures. The assets produced an average of 15k barrels of oil equivalent per day (boepd) in 2017, roughly 55% of the company’s total output.

The potential transaction was first reported last September. It was two months after other reports emerged that United Energy had hired investment bank Perella Weinberg Partners to look into selling down its stakes in Egypt and Iraq. There were also other talks for a possible merger with UK’s SOCO International earlier in 2018 which fell apart. Kuwait Energy lost its CEO and saw a credit downgrade in 2017. The company owes USD 290 mn in loans and arrears due this year. It was due to start repaying a c. USD 150 mn convertible loan last year to an entity controlled by collapsed private equity giant Abraaj.