3i Quoted Private Equity Limited will acquire up to 21,819,791 shares in Salamander Energy plc at 300 pence per share resulting in a potential investment of up to £65.5 million and a potential shareholding in Salamander of up to 14%.
Salamander announced a placing and open offer to raise approximately £100 million to enable the acceleration of its exploration, development and acquisition programmes. Salamander, which became a constituent of the FTSE 250 index within three years of inception, has built a portfolio of production, development and exploration assets with interests in Indonesia, Thailand, Vietnam, Lao PDR and the Philippines.
The business has Proven and Probable (P2) reserves of 56.6 million barrels of oil equivalent and currently produces 8,200 barrels of oil equivalent per day of oil and gas.3i QPEL will acquire 9,583,586 New Ordinary Shares in a firm placing. Furthermore, it will acquire up to 7,774,205 New Ordinary Shares by underwriting these shares in the open offer.
The completion of these transactions is subject to shareholder approval at an extraordinary general meeting which Salamander will hold on August 8, 2008.
In addition, 3i QPEL has today agreed to purchase 4,462,000 Salamander shares from 3i Group plc and funds managed by 3i Investments plc at the placing price of 300 pence per share. This transaction is conditional upon the successful closing of Salamander's placing and open offer. 3i Group's Growth Capital business initially invested in Salamander in September 2005.
Upon completion, and for so long as 3i QPEL holds not less than 10% of the Salamander's issued ordinary share capital, 3i QPEL will have the right to appoint a non-executive director of the company.
Bruce Carnegie-Brown, Managing Partner of 3i Investments, commented, "We are pleased that 3i QPEL will become a strategic investor in Salamander, helping the company to realize the next phase of its growth plans. Salamander is very well positioned in the fast-growing and energy-hungry markets of South East Asia and is led by a highly experienced and dynamic management team."
David Tyler, Chairman of 3i QPEL, added, "I am delighted that we are investing in a company with such exciting growth prospects. Our strong financial position has enabled us to contribute to the success of Salamander's fundraising against a volatile market backdrop."
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