Deals
Kosmos Deal Would Ease Tullow Finances But Debt Presents Hurdle
- Appeasing shareholders and creditors is ‘key obstacle:’ Shore
- Deal would need to address Tullow debt refinancing, BI says
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A potential takeover by Kosmos Energy Ltd. could resolve Tullow Oil Plc’s balance sheet issues, but debt refinancing would be a challenge, according to analysts.
Both companies acknowledged early merger talks on Thursday, following media speculation. Together, they would create an Africa-focused explorer with production exceeding 120,000 barrels of oil equivalent a day. Under stock-exchange rules, Dallas-based Kosmos must announce whether or not it will make an offer by Jan. 9.