Selan Exploration Approves Merger With Promoter Firm Antelopus Energy: All You Need To Know
The all-stock deal, subject to approvals, will more than double the promoter holding in Selan Exploration to about 70%.
The board of Selan Exploration Technologies Ltd. approved its merger with promoter-owned Antelopus Energy Pvt., citing value addition for shareholders by combining their exploration and reservoir management capabilities.
The all-stock deal, subject to approvals, will more than double the promoter holding in Selan Exploration to about 70%, according to the company's exchange filing.
Merger Details
The scheme of arrangement includes capital reduction of Antelopus Energy into Selan Exploration. Selan Exploration will issue and allot:
4,287 fully paid-up equity shares of Rs 10 each for every 10,000 shares of Rs 10 each held in Antelopus Energy.
4,287 fully paid-up equity shares of Rs 10 each for every 10,000 Class A1 equity shares of Rs 10 each owned in Antelopus Energy.
18 fully paid-up equity shares of Rs 10 each for every 10,000 redeemable preference shares of Rs 10 each held in Antelopus Energy.
The merger involves no cash consideration.
Why The Merger
According to the filing, the merger is aimed at:
Diversification of company portfolio across multiple sedimentary basins, both onshore and offshore, providing access to increased proven oil and gas resource base and ability to enhance production.
Enhancing value for stakeholders through pooling of resources and sharing technical capabilities.
Unison in opportunities presented to both entities.
Efficient management, greater economies of scale and stronger resource base for future growth.
Simplification of the shareholding structure and strengthening operational strategy.
Business And Financials
Selan Exploration is a listed oil and gas explorer since 1992. The company possesses three oil and gas fields—Bakrol, Lohar, and Karjisan—in Gujarat.
Incorporated in 2018, Antelopus Energy focuses on leveraging discovered and stranded resources in the Indian subcontinent. The company operates two offshore contract areas—one each off west and east coast—and two onshore contract areas in Assam and Andhra Pradesh.
Selan Exploration reported a revenue of Rs 118 crore in financial year 2023 and is also debt-free. Whereas details regarding Antelopus FY23 topline, bottom line, total liabilities and shareholding details were't disclosed by in the exchange filling.
BQ Prime awaits response to queries emailed to both Selan Exploration Technologies and Antelopus Energy Private.
Shareholding Pattern
Promoter holding in Selan Exploration will rise from 30.46% prior to the merger to 69.93% after it is completed.
Stock Performance
Shares of Selan Exploration Technologies were up 6.54% at Rs 508.60 apiece compared to flat Nifty 50 as of 11:14 a.m. The stock has risen 23.51% in the past one month and 111% year-to-date.
