TOP STORY from the ProspectingJournal.com
February 23, 2011 – LONDON, UK – It was a long time in the making, with the announcement going all the way back to November of last year, but Africa Oil’s [AOI – TSX.V] acquisition of Centric Energy was finalized this week. With nearly unanimous support (98.74% voting in favour of the transaction), yesterday the deal was officially closed and the remodeling has already begun.
Centric Energy’s official website CentricEnergy.com already redirects to Africa Oil’s website at AfricaOilCorp.com, which in today’s information-hungry world is the official stamp of transition. To reiterate the details of the deal:
• Each Centric shareholder will receive 0.3077 of a common share of Africa Oil
• As well, each Centric shareholder can expect $0.0001 in cash for each share they hold
• At closing, Centric’s shares were trading $0.62 per share, whereas today’s price for AOI is $1.98 per share
A previous following of African oil plays (including Turkana Energy - also acquired by AOI), led to this author’s November 2010 column in Resource World Magazine. When the Prospecting Journal first brought Centric Energy to our readers’ radar, CTE.V shares were trading at $0.35. At the last close of $0.62 per share, we witnessed a 77.14% increase in the share price.
In the following period after publishing these pieces, Centric dealt with the last details pertaining to a Kenyan High Court ruling on six blocks by December 2010. It also closed the farmout of Kenyan Block 10BA to Tullow Oil. All said, Alec Robinson, now-former President and CEO of Centric Energy successfully navigated his ship to a positive acquisition ending. The lessons learned from Centric and its new successors in Africa Oil Corp. are proving that there is a pro-business environment in Kenya.
G. Joel Chury
Editor in Chief
No fee has been paid for the production and distribution of this article and as such should be viewed in the context of a commentary. The author does not own any shares of the companies referred to within the article, but reserves the right to acquire shares in any of the companies mentioned upon 6 weeks after publication.