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)
Read the full article on Seeking Alpha
For further details see:
Africa Oil: Moving On Up