VAALCO and TransGlobe close strategic business combination

On July 14, 2022, VAALCO Energy, Inc. announced that it entered into a definitive arrangement agreement to acquire TransGlobe Energy Corporation (“TransGlobe”) in a stock-for-stock strategic business combination transaction valued at US$307 million. The combination would create a world-class African-focused E&P company supporting sustainable growth and stockholder returns.

Unanimously approved by the Boards of Directors of both companies, the transaction was executed by way of plan of arrangement pursuant to Section 193 of the Business Corporations Act (Alberta). Under the terms of the arrangement, shareholders of TransGlobe would receive 0.6727 of a VAALCO share (par value US$0.10 per share) for each TransGlobe share held.

Prior to the arrangement, neither VAALCO nor the resulting company, VAALCO Energy Canada ULC, owned any common shares of TransGlobe.

Closing was announced on October 14, 2022. Pursuant to the arrangment, VAALCO Energy Canada ULC acquired 73,296,764 shares of TransGlobe, representing 100% of the issued and outstanding TransGlobe shares and accordingly, VAALCO beneficially owns 100% of the issued and outstanding shares of TransGlobe. No fractional shares of VAALCO were issued as part of the arrangement, and TransGlobe’s registered shareholders received cash in lieu of any fractional shares of VAALCO. In the aggregate, TransGlobe shareholders received approximately 49.3 million shares of VAALCO.

Following closing, the common shares TransGlobe’s were delisted from the Toronto Stock Exchange, the Nasdaq Capital Market and the AIM market operated by the London Stock Exchange plc.

Further information can be found on Globe Newswire’s website.

TransGlobe is a cash flow-focused oil and gas exploration and development company whose current activities are concentrated in the Arab Republic of Egypt and Canada.

VAALCO is an independent energy company with production, development and exploration assets in the West African region. An established operator within the region, VAALCO holds a 63.6% participating interest in the Etame Marin block, located offshore Gabon, which to date has produced over 126 million barrels of crude oil and of which VAALCO is the operator.