Tullow Oil gets 95% backing for rights issue
Tullow Oil has received acceptances for around 95.3% of the new shares offered in its $750m rights issue, which was announced back on 17 March.
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The company said on Tuesday that it received valid acceptances in respect of 444.9m new shares at 130p each.
Barclays, JP Morgan and Morgan Stanley, the underwriters, will now seek buyers for the 21.9m shares not taken up in the rights issue.
Tullow said in March that it was launching the rights issue to generate free cash flow, repay its debt and improve operational flexibility.
Chief executive officer Aidan Heavey said at the time: "Tullow and its staff have worked exceptionally hard over the past three years to re-set the business comprehensively in the face of the toughest conditions I have known in the oil sector. This is the right time to get our balance sheet in order and this offering will give Paul and the management team the necessary financial and operational flexibility to grow our business even if oil prices remain low."