CMS is advising Ithaca Energy on its acquisition of Valiant Petroleum in a deal that will enable the North-sea focused oil and gas operator to double its production forecast for the year.
On 1 March 2013, Ithaca announced that it had agreed terms to acquire Valiant for £203 million by means of a Court- sanctioned scheme of arrangement under Part 26 of the Companies Act. The transaction reflects the outcome of a formal sales process initiated by Valiant on 6 September 2012 under the recently revised Takeover Code regime and represents one of only a handful of deals where the Takeover Panel has agreed to a break fee being payable by the target company in certain circumstances.
Corporate partners Gary Green and James Parkes led the transaction for Ithaca. Gary comments: “We are delighted to have advised new client Ithaca on this strategic acquisition, which is one of a number of high-profile energy transactions on which CMS has advised over the course of the last year.”
Commenting on the acquisition, Jack Lee, Non-Executive Chairman of Ithaca said: “This proposed acquisition represents a significant step forward in the execution of Ithaca’s strategy to build a highly profitable North Sea oil and gas company. The combined assets of the company have a strong strategic fit, with the acquisition materially increasing and broadening Ithaca’s producing asset base and reserves portfolio.”
The CMS cross- practice team comprised Gary Green (Partner), James Parkes (Partner), Narinder Jugpal (Associate) and Jenny Stephenson (Associate) in the Corporate team. Bob Palmer (Partner), Tom Mallelieu (Associate) and Sarah Bridge (Associate) provided specialist Oil & Gas expertise, whilst Nicholas Stretch (Partner) and Isabel Pooley (Associate) advised on the implications of the transaction for Valiant’s share schemes. Patrick Donegan (Partner) provided advice in relation to acquisition financing and Caroline Hobson (Partner) and Sarah Ozanne (Partner) advised on competition and employment matters, respectively.
