CA - Africa Oil: Moving On Up
2024-06-25 22:29:33 ET
Summary
- Africa Oil to issue shares in exchange for the remaining Prime interest, which will double its cash flow while issuing about 53% more shares.
- The dividend will increase substantially. 50% of free cash flow to be returned to shareholders, aligning company with industry competitors.
- This increases the company income from Nigeria. It also puts it in a better competitive position to grow.
- The combination erases the duplication caused by Prime and two shareholders all having independent accounting and operations.
Africa Oil (AOIFF) (AOI:CA) announced a deal to issue enough shares in exchange for the rest of the interest in Prime that it does not already own. For existing shareholders, the most immediate result will be a significant increase in the dividend.
Africa Oil Summary Of Prime Interest And New Dividend Policy (Africa Oil Acquisition Of Prime Interest Presentation June 24, 2024)
