San Leon secures $187m investment, becomes majority stakeholder in ELI
San Leon, the Nigeria-focused independent oil and gas exploration giant, has secured a colossal investment of up to $187 million from Tri Ri Asset Management Corp. (TRAM). Further bolstering its financial portfolio, San Leon will channel these funds to invest in Energy Link Infrastructure (Malta) Limited (ELI), making San Leon the majority shareholder with a commanding 55% stake in ELI.
San Leon’s CEO, Oisin Fanning, remarked, “In these challenging times, our team’s resilience has culminated in one of the largest fundraisings by an AIM oil & gas entity in recent memory. This partnership with TRAM not only aligns us with a strategic funding ally but also cements our position as the majority stakeholder in ELI, a move which promises transformational potential for the entire regional industry, especially with the inauguration of the FSO Akaso Terminal.”
TRAM’s Chief Investment Officer, Asad Ali, commented on the partnership’s strategic alignment, emphasizing San Leon’s proficiency in Sub-Saharan Africa and the immense potential OML 18 and ELI’s new infrastructure brings to the table.
Investment Breakdown:
- An immediate drawdown of a $125 million convertible secured loan from TRAM.
- TRAM’s commitment to subscribe to nearly 45 million new ordinary shares in San Leon at 30 pence per share by October 2023, generating approximately £13.5 million.
- Possibility of a further $46 million investment via 62.5 million warrants granted by San Leon to TRAM, exercisable at 60 pence per new share.
Capital Utilization:
San Leon aims to:
- a) Inject an additional $37 million into ELI.
- b) Acquire an additional 13.5% of ELI’s existing shares from Ocean Pearl Maritime SA for US$12 million.
- c) Settle the previously announced $5 million loan from funds managed by Toscafund.
- d) Meet its working capital requirements and honor its creditor commitments, which currently stand at around US$15 million.
With San Leon’s reinforced shareholding in ELI, the company is poised to have a decisive influence over ELI’s strategic roadmap, particularly the timely completion of the pipeline construction.
About TRAM & ELI:
New York-based TRAM, established in 2019, boasts a diversified portfolio with assets under management amounting to $850 million and co-investments of $1.2 billion. On the other hand, ELI, pivotal to this investment narrative, owns the groundbreaking ACOES system – an undersea pipeline and floating storage. The ACOES, expected to be operational in H2 2023, promises to revolutionize oil export from the OML 18 block, with a capacity to process 100,000 barrels of oil per day.
Shareholder & Broker Announcements:
As part of their continued commitment to transparency and growth, San Leon has been actively engaged in strategy dialogues with its three principal shareholders. Furthermore, San Leon proudly welcomes Fortified Securities as its joint broker, who played a pivotal role in the TRAM-San Leon investment discussions.
The shares will remain suspended until all necessary documentation concerning the new ELI investments is completed and ratified by the shareholders.