HK-listed United Energy to buy Kuwait Energy for $651 mln (updated)

United Energy

24/09/2018 05:40

(Adds details of deal and company background)
    HONG KONG, Sept 24 (Reuters) - United Energy Group  0467.HK 
said on Monday it would buy Kuwait Energy  IPO-KEC.L  for up to
$651 million as the Hong Kong-listed upstream oil and gas
company aims to enter the Middle East and North Africa markets. 
    The deal will transform United Energy into a medium-sized
international independent oil and gas company with a diversified
portfolio of assets, while further expanding its development
potential, it said in a filing to the Hong Kong stock exchange. 
    Kuwait Energy has an upstream focus and is involved in
exploration, appraisal, development and production activities in
several countries, including Iraq, Egypt, Yemen and Oman, United
Energy said. 
    United Energy, headquartered in Hong Kong with offices in
Beijing and Pakistan, has agreed to buy $491 million in Kuwait
Energy's common shares and $160 million in convertible shares
via a wholly-owned subsidiary, according to the filing. 
    The deal will give Kuwait Energy an enterprise value of $900
million, according to a person familiar with the transaction.   
 
    Energy and power has been the most active sector in
Asia-Pacific in terms of M&A deal value so far the year,
accounting for some $117 billion, or 14.3 percent of the
region's total deals, according to Thomson Reuters data. 
    Founded in 1992, United Energy acquired BP's  BP.L  assets
in Pakistan in 2011 for $775 million and has since invested
heavily in that country, according to the company's website. 
    It is now the fourth-biggest energy and power company listed
on the Hong Kong bourse, and says it is looking for high quality
international upstream M&A opportunities. 
    United Energy's chairman Zhang Hongwei has a 71 percent
controlling stake in the company. 
    JP Morgan advised United Energy on the transaction, while
energy-sector investment bank Tudor, Pickering, Holt & Co
advised Kuwait Energy, said the person familiar with the deal. 
    Kuwait Energy did not immediately respond to a request for
comment. 

 (Reporting by Donny Kwok and Kane Wu; Editing by Stephen Coates
and Tom Hogue)
 ((donny.kwok@thomsonreuters.com; +852 2843 6470; Reuters
Messaging: donny.kwok.reuters.com@reuters.net))