VaalcoEnergy has announced that the $307 million strategic merger with TransGlobe Energy Corporation has been completed. Under the ticker EGY, the combined business will now trade on the NYSE and LSE.
With a varied portfolio of assets in Gabon, Egypt, Equatorial Guinea, and Canada as well as significant future expansion potential, the combination creates a major African-focused operator. With the closing, VAALCO adds three new members to the board, bringing the total number of directors on the board to seven.
“We are eager to conclude this transformative deal and grateful for the enthusiastic backing we have today from a single group of stockholders. The merger is significant because it creates a large-scale corporation with a solid balance sheet and a more diverse production base that will support the merged company’s chances for success.
According to Vaalco CEO George Maxwell, “the combined portfolio has significant inherent value, which should allow us to generate meaningful cash flow to fund increased stockholder dividends, share buybacks, and potential supplemental stockholder returns at a rate that would not have been feasible by either Vaalco or TransGlobe on a standalone basis.”
Recall that Vaalco completed the stock-for-stock acquisition of all of the outstanding common shares of TransGlobe following the acceptance of the agreement by shareholders of both businesses. Following the merger, Vaalco investors now hold around 54.5 percent of the merged business, while TransGlobe stockholders hold approximately 45.5 percent.
David Cook, Edward LaFehr, and Timothy Marchant, three new directors, received a warm welcome from Maxwell. Cook joined the TransGlobe Board of Directors in August 2014, and in May 2019, he was chosen to lead the board. Cook has over 30 years of experience and has worked in positions at Noreco, INEOS, and Dong Oil and Gas before to joining TransGlobe.
In March 2019, Edward LaFehr was appointed to the TransGlobe Board of Directors. Until his retirement in October 2022, LaFehr served as the chief executive officer of Calgary-based Baytex Energy Corporation, a mid-sized oil and gas business. LaFehr has 35 years of expertise working for companies including Amoco, BP, Talisman, and TAQA in the oil and gas sector.
In March 2020, Timothy Marchant was named to the TransGlobe Board of Directors. With 40 years of expertise in the oil and gas sector in Canada and other countries, Marchant has a wealth of knowledge in exploration, international growth plans, sustainability, and international operations.