Premier Oil resumes trading as E.ON deal terms amended

Premier Oil shares resumed trading on Monday as the terms of its deal to buy the UK North Sea assets of German power company E.ON were amended so that it no longer constitutes a reverse takeover.

Back in January, Premier struck a deal to acquire the assets for a net $120m (£84m) plus working capital adjustments.

At the time of the announcement, the completion adjustments meant the deal was classed as a reverse takeover and trading in Premier Oil shares was suspended at the company’s request.

However, the companies have now agreed to reduce the completion adjustment to $15m and the aggregate consideration for the transaction payable by Premier to $135m.

This is a result of an increase of the dividend paid to E.ON prior to completion. The sale and purchase agreement has been amended to reflect the revised agreement.

The acquisition is subject to approval by Premier shareholders and the group said it will publish a circular and notice of meeting in due course.

The assets being bought are located in the Central North Sea, West of Shetlands and the Southern Gas Basin and add stable UK gas revenues to the portfolio rebalancing Premier’s commodity exposure.