Premier Oil and Chrysaor are about to merge
The reverse takeover will see a new giant player in the European oil industry.
Premier Oil (OTCPK: PMOIF) and Chrysaor Holdings agree to merge that will create the largest oil and gas producer in the British North Sea, surpassing BP. The deal will be a reverse takeover, with Premier's creditors paying $ 1.23 billion in cash and shareholders expected to acquire a 5.45% stake in the combined company. Premier has also abandoned plans to buy BP's North Sea fields for $ 210 million, a small dent in BP's $ 25 billion disposal target. Premier has spent most of this year restructuring its debt while its stock price has fallen 85%. Chrysaor, which is backed by private equity firms Harbor and EIG, has become a major North Sea producer through the acquisition of UK fields from Royal Dutch Shell and ConocoPhillips and has spent $ 5.7 billion since 2017.