Heritage and Enerji in US$5.5bn deal



Genel Enerji, a Turkish firm exporting crude from Iraqi Kurdistan, has agreed to merge with Canada's Heritage Oil in a strategic deal aimed at accelerating the development of billions of barrels of oil from discoveries in northern Iraq and Uganda. If approved by a majority of Heritage's shareholders, the stock transaction would create a combined company, HeritaGE, worth about US$5.5billion, with substantial cash flow from which to fund development, according to Paul Atherton, the chief financial officer of Heritage.

"We see this as an opportunity whereby we can build a new regional giant," he said. The "reverse takeover" agreement calls for Heritage, whose stock trades on exchanges in London and Toronto, to double its number of shares outstanding in order to give Cukurova Group, the Turkish conglomerate that owns Genel, a 50 per cent stake in the merged company. Mehmet Sepil, the Genel chief executive, said the combination, which he would also head, would create "a significant main board listed company with a strong financial capability" and access to international capital markets and expertise.

On June 1, Genel started exporting about 30,000 barrels per day of crude from two northern Iraqi fields, after Baghdad and the Kurdistan regional government reached a deal to kick-start exports from the Kurdish region, breaking a long-standing impasse. Heritage, an oil exploration company with negligible production, last month announced a large oil discovery in Kurdistan that it estimated could contain up to three billion barrels of recoverable crude. The company also has substantial oil reserves in Uganda awaiting development.

Privately held Cukurova, controlled by the Turkish magnate, Mehmet Karamehmet, is one of Turkey's biggest conglomerates, with interests spanning the telecommunications, media, banking and industrial sectors. tcarlisle@thenational.ae

'Brazen'

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Rating: 3/5

The National's picks

4.35pm: Tilal Al Khalediah
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Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

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  • Premier League-standard football pitch
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Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia

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Three stars

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Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 

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Director: Punit Malhotra

Stars: Tiger Shroff, Tara Sutaria, Ananya Pandey, Aditya Seal 

1.5 stars

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Engine: 4.0-litre flat-six
Power: 510hp at 9,000rpm
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
Price: From Dh801,800
Dubai World Cup factbox

Most wins by a trainer: Godolphin’s Saeed bin Suroor(9)

Most wins by a jockey: Jerry Bailey(4)

Most wins by an owner: Godolphin(9)

Most wins by a horse: Godolphin’s Thunder Snow(2)

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Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

Tips to keep your car cool
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  • Avoid leather interiors as these absorb more heat
How to watch Ireland v Pakistan in UAE

When: The one-off Test starts on Friday, May 11
What time: Each day’s play is scheduled to start at 2pm UAE time.
TV: The match will be broadcast on OSN Sports Cricket HD. Subscribers to the channel can also stream the action live on OSN Play.

UAE currency: the story behind the money in your pockets
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Game Changer

Director: Shankar 

Stars: Ram Charan, Kiara Advani, Anjali, S J Suryah, Jayaram

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'The Batman'

Stars:Robert Pattinson

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Business Insights
  • As per the document, there are six filing options, including choosing to report on a realisation basis and transitional rules for pre-tax period gains or losses. 
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