TransGlobe Energy, Caracal Energy to merge

|By:, SA News Editor

TransGlobe Energy (TGA) and Caracal Energy (CCAXF) agree to merge through an exchange of shares, creating a $1.8B venture focused on oil production in Africa with improved finances and bigger growth potential.

Caracal shareholders are expected to hold ~65.6% of the new company, with the reaminder held by former TGA shareholders.

TGA +4.5% premarket.