Tullow to raise £120m for takeover

TULLOW OIL will hope to raise £120 million through a rights issue to help fund the £319m acquisition of Energy Africa.

The takeover, first announced in March, is the largest in Tullow's history and will be funded through the rights issue, debt and internal cash.

Tullow said yesterday that shareholders accounting for just over 90% of Energy Africa's shares have agreed to the deal, which will make the Irish firm one of the largest exploration firms operating in west Africa. Tullow said that the enlarged group would also have a production capacity of over 50,000 barrels of oil equivalent per day.