Uploaded by chunkymark on 23 Feb 2012
The Artist Taxi Driver
Three Cove executives to share £40m windfall after Shell takeover
By Tom Bawden
Shell is setting up shop in Kenya and Mozambique after agreeing to buy the East Africa-focused oil and gas company Cove Energy for nearly £1bn.
The FTSE 100 oil giant will pay 195p a share for Cove in a deal that will value the company at £992.4m and will hand its top three executives an estimated total windfall of nearly £40m.
Shell, which was advised by Morgan Stanley, regards the takeover of Cove as an important step to developing a world-beating liquefied natural gas (LNG) supply operation.
The jewel in Cove’s crown is its 8.5 per cent stake in the Rovuma Area 1 block off the shore of Mozambique, a promising LNG project that contains more than 30bn cubic feet of natural gas. The project is moving to the development stage and could be a key supplier to the energy-hungry Asian markets.
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