Energean in talks to buy Kerogen Capital’s 30% stake in Energean Israel

Energean said on Monday that it’s in exclusive talks to buy Kerogen Capital’s 30% stake in Energean Israel.

The FTSE 250 exploration and production company said it has entered into an agreement granting a 30-day period of exclusivity for the purposes of negotiating the deal.

"The terms of the potential transaction remain subject to discussion and there can be no certainty that a transaction will proceed," it said, adding that it will update the market as and when appropriate.

Energean said it expects to fund the acquisition, which requires approval from its shareholders, without having to issue equity to investors.

If a deal is reached, Energean will own the whole of Energean Isreal.

"Energean's board remains committed to its strategy of delivering long-term sustainable cash flows that underpin our goal of paying a sustainable and meaningful dividend," the company said.

"Our strategic ambition is to deliver value for all of our stakeholders through the responsible management of our current portfolio and the careful selection of growth opportunities, which are evaluated with reference to strict strategic, financial, operational and sustainability criteria and can be funded within Energean's medium term leverage target, being net debt/EBITDAX of less than 2.0x. The board believes that the potential transaction is well-aligned with these strategic objectives and ambitions."