AFC Equity Investment has agreed to acquire the stakes of Aker Capital and The Resource Group (TRG) in Aker Energy.
Aker Capital currently holds a 50.79% stake in Aker Energy, while TRG holds the remaining 49.21% stake.
AFC Equity Investment to acquire Aker Energy. (Credit: Ben Wicks on Unsplash)
Through the acquisition, AFC Equity Investment will become the sole shareholder of Aker Energy.
The company will also have 50% ownership in the Deepwater Tano Cape Three Points (DWT/CTP) block offshore Ghana, which includes the Pecan field.
AFC Equity Investment previously invested $200m in senior secured bonds in the DWT/CTP block development and its CEO is currently a member of the Aker Energy board.
As part of the transaction, Aker Energy’s management team will remain unchanged.
The company intends to submit the Plan of Development (PoD) for the Pecan field to Ghanaian authorities this month.
Aker president and CEO Øyvind Eriksen said: “Aker still believes in the resource potential of the DWT/CTP block in Ghana. AFC is already invested in this field development and is well-positioned to continue this development.
“In line with Aker's capital allocation priorities, we have thus made a strategic decision to sell our stake in the Ghana assets with an earn-out model as a consideration. This way we share the risk and rewards of this future development.
“The sale to a reputable African institution, such as the AFC, was considered to be the best way forward to ensure the development of the Pecan field, as well as the whole DWT/CTP block. We are therefore very pleased to have reached this agreement with AFC.”
The transaction is structured in an earn-out model, where the consideration will be paid based on potential future sales and production proceeds from the Pecan project.
Aker will continuously evaluate the value of the potential earn-out consideration compared to its current book value, which forms part of Aker’s Net Asset Value reporting.
AFC Equity Investment is owned by Africa Finance Corporation (AFC), a pan-African multilateral development finance institution established through a public–private partnership to serve Africa.
The company has been offering pragmatic solutions to Africa’s infrastructure deficit and built a portfolio of loans worth $10.5bn, and other investments across six sectors.
In the last 15 years, AFC invested in several projects in Ghana across different sectors, both as equity and debt provider.
AFC president and CEO Samaila Zubairu said: “AFC will continue to ensure that Africa’s natural resources, including its vast oil and gas reserves, are developed sustainably within the global framework on energy transition and the UN Sustainable Development Goals.
“The DWT/CTP Project, which aims to develop Ghana's proven resources, has the potential to create jobs, increase government revenues, and spur development in the country.
“Our continuing collaboration with Aker entities for technical support to the development will ensure that the PoD is submitted on time and in line with the framework agreed with the Government of Ghana.”
