Trojan Equity Limited (Trojan) has acquired Byron Energy Pty Ltd (Byron) for US$50 million.
Since the formation of Byron Energy Pty Ltd (Byron) in 2005 as a private company involved in oil and gas prospect evaluation in the Gulf of Mexico, Oaklins' team Australia has been a minority shareholder and ad-hoc advisor. In 2012, Byron had reached a sufficiently mature stage to seek a public listing and raise capital for its first major drilling prospect.
Trojan, a small investment group, made an offer which was acceptable to Byron. A dialogue ensued which gradually translated to agreement on a mechanically sound structure whereby Byron, valued significantly higher than the listed company, would be acquired for shares by Trojan, and conduct at the same time a capital raising.
Such a transaction needed a series of milestones to be reached – agreement on the relative values of buyer and seller and therefore "swap price and ratio" for the acquisition; approval by the shareholders of Trojan; a capital raising and finally a full application for the merged entity to be re-admitted to the Australian Securities Exchange.
Deal progress was interrupted for two months due to a competing, higher offer for Byron which ultimately fell through. Thereafter Byron and Trojan resumed negotiations at a higher Byron value, and by April 2013 the target capital raising was secured and the companies were ready to merge.
Oaklins' team in Australia advised the seller in this transaction.
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