On 21st March 2019, United Energy Group Limited (00467.HK) (“UEG”) completed the acquisition of all the Target Shares of Kuwait Energy Public Limited Company (“KE”), with a transaction value of $814.5 million in total, through nearly 6 months’ work.
According to the announcement of United Energy Group, a wholly-owned subsidiary of UEG (the “Purchaser”) and KE entered into the Transaction Agreement on 23th September 2018, pursuant to which UEG has conditionally agreed to acquire all of the Target Shares of KE. KE is an independent oil & gas company in the Middle East, which has its businesses in the field of upstream oil & gas exploration, development and operation. The company has assets in 10 oil fields in four countries, such as Iraq and Egypt, which are of high quality and large scale. According to estimated reserves, the company is one of the biggest independent oil & gas companies within the Middle East area.
This transaction is the first acquisition project of United Energy Group completed in 2019. Afterwards, United Energy Group will have operation blocks covering above 21,200 square kilometers and transform into a medium-sized independent international oil & gas company. The production base and long reserve life of Kuwait Energy Company are highly complementary to the existing portfolio of and provides a diversified and sustainable development profile to United Energy Group. The Acquisition will significantly improve the profile of the Company and further expand its development potential.
In recent years, United Energy Group grows fast and behaves actively in investment and expanding activities. From 2011 to 2018, it finished the acquisition & merging of all the assets of BP, AROL, OMV Group in Pakistan. Meanwhile, United Energy Group introduced Chinese oil and gas expertise along with supply chain management into Pakistan block areas, resulting in the complete turn-around of an asset that was facing steep production declines during the 2009 to 2011 period. The business experienced around 25% year on year growth over the last 5 years, making UEG and UEP the largest foreign E&P Company and investor in Pakistan. With its extraordinary performance, UEG was named "2013 Top 100 Hong Kong Listed Company" and ranked in third place in the list of "Top 10 Companies for Revenue Growth” in Nov 2013, honored with the “Best Investment Value Award” and the “Best Investment Value Award in Shenzhen – Hong Kong Stock Connect” at the “2017 China Financial Market Awards” held by “China Financial Market”, a famous financial magazine in Hong Kong in January 2018, and awarded “The Listed Enterprise Excellence Awards 2018-Excellent Performance" selected and held by Capital Weekly, a renowned financial magazine in Hong Kong in November 2018.
With the completion of this project, United Energy Group will enter the Middle East market that offers rich oil & gas resources, competing and cooperating with world top oil & gas majors in one platform. In the future, United Energy Group will leverage its strong operation and management capabilities to build up itself a fast-growing and competitive energy company that can make greater achievements.