Gulf Keystone to Merge With ShaMaran in $601 Million All-Share Deal
Gulf Keystone Petroleum Limited (LSE:GKP) has agreed to merge with ShaMaran in an all-share transaction that values ShaMaran at $601 million. Under the agreement, ShaMaran shareholders will receive 0.07533958 Gulf Keystone shares for each ShaMaran share, implying a 22.9% premium over ShaMaran's last closing price. Additionally, Gulf Keystone shareholders are scheduled to receive a $50 million special dividend, bringing the effective headline premium down to 13.5%. Upon closing, ownership will be split roughly evenly between the two shareholder groups.
The merger combines adjacent oil assets across Kurdistan and federal Iraq, significantly expanding operational scale. On a combined basis, the pro forma entity will hold 323 million barrels of working interest 2P reserves and daily production of 53 thousand barrels of oil per day. The increased operational footprint is expected to enhance cash flow potential and provide stronger operating leverage as regional export dynamics evolve.
The transaction is expected to complete in mid-2027, subject to customary closing conditions. Key milestones ahead include approvals from shareholders and the Kurdistan Regional Government, debt refinancing arrangements, and clarity regarding listing migrations.
Key points
- Gulf Keystone Petroleum Limited will merge with ShaMaran in an all-share deal valuing ShaMaran at $601 million.
- ShaMaran shareholders will receive 0.07533958 Gulf Keystone shares per share, representing a 22.9% premium.
- Gulf Keystone shareholders will receive a planned $50 million dividend, reducing the headline premium to 13.5%.
- Post-merger ownership will be split approximately 50/50, with completion targeted for mid-2027.
- The combined entity will hold 323 million barrels of working interest 2P reserves and production of 53 thousand barrels per day.
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What are the terms of the Gulf Keystone and ShaMaran merger?
Gulf Keystone will merge with ShaMaran in an all-share transaction valuing ShaMaran at $601 million. ShaMaran holders receive 0.07533958 Gulf Keystone shares per share, and Gulf Keystone shareholders will receive a $50 million dividend. Ownership will be split roughly 50/50.
What will be the production capacity of the combined oil company?
The combined company will have working interest 2P reserves of 323 million barrels of oil and daily working interest production of 53 thousand barrels of oil per day.
When is the Gulf Keystone and ShaMaran deal expected to close?
The deal is targeted to close in mid-2027, subject to approvals from shareholders and the Kurdistan Regional Government, along with debt refinancings.