Cairn Energy’s Subsidiary Acquires Nautical Petroleum for $642m to Balance E&P Portfolio and Complement its Parent’s Asset Base in North West Europe

Pages: 7 Published: June 01, 2012 Report Code: GDGE0390MA

  • Overview
  • Contents
  • Tables
  • Figures
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Capricorn Energy Limited (Capricorn) a subsidiary of Cairn Energy PLC (Cairn), agreed to acquire Nautical Petroleum plc (Nautical), for a purchase consideration of approximately £414m ($642.36m) or £4.5 ($6.98) per share. The company will fund the acquisition cost through its existing cash resources. The offer price represents a premium of approximately 51.1% to the closing price of £2.97 ($4.61) per share on June 12, 2012, and a 45.3% premium to the average closing price of £3.098 ($4.81) per share over the three month period ended June 12, 2012. Investec and RBC Capital Markets Inc. are acting as financial advisors, while Buchanan Communications Ltd. is acting as public relations advisor to Nautical in the transaction. N M Rothschild & Sons Limited is acting as financial advisor, while Brunswick Group LLP is acting as public relations advisor to Cairn in the transaction. The transaction has an implied deal value of $4.34 per barrel of oil equivalent (boe) of contingent resources. The transaction is subject to the approval of shareholders of Nautical.

Scope

Rationale behind acquisition of Nautical Petroleum by Cairn Energy

Stratigic benefits for the companies involved in the transaction

Geography covered – UK

Reasons to Buy

Develop a sound understanding of the major M&A's, Partnerships, and Joint Ventures undertaken by Cairn and its Subsidiaries. Rationale behind the acquisition of NauticalPetroleum.

Identify the reason of Cairn acquiring Nautical Petroleum

Table of Contents

1 Table of Contents

1 Table of Contents 1

1.1 List of Tables 1

1.2 List of Figures 1

2 Capricorn Energy to Acquire Nautical Petroleum for $642m 1

2.1 Deal Overview 1

2.2 Deal in Brief 1

2.3 Cairn to Balance its Exploration and Production Portfolio by Acquiring Nautical 2

2.4 New Technologies and Goverenment Policies have Led to Increased M&A Activities in the North Sea Region 4

2.5 Nautical's Shareholders to Realize Greater Value on their Investment 5

2.6 Deal Financials and Valuations 5

3 Appendix 7

3.1 Methodology 7

3.2 Contact Us 8

3.3 Disclaimer 8

List of Tables

List of Tables

Table 1: Cairn, Major Deals to Restructure Oil and Gas Portfolio, Since 2011 2

Table 2: Nautical, Major Oil and Gas Asset in Portfolio, December 2011 3

Table 3: North Sea, Major Deals in North Sea, Since January 2012 4

Table 4: Companies Involved 5

Table 5: Financials of the Deal 5

Table 6: Advisor Information 6

Table 7: Target Information 6

Table 8: Target’s Financial Information 6

Table 9: Share Price Information 6

Table 10: Company Valuation Multiples 6

Table 11: Target’s Production and Reserves Information 6

Table 12: Company Valuation Multiples 7

Table 13: Commodity Prices in $, Last Close 7

Table 14: Acquirer Information 7

List of Figures

1.2 List of Figures

Figure 1: The Location of Assets of Nautical in the Map, 2012 3

Figure 2: Nautical, Increase in Stock Price in LSE Due to Acquisition Offer by Capricorn, 2012 5

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