United Energy to Acquire Kuwait Energy

United Energy

The United Energy would be purchasing the Kuwait Energy for up to $651 million as informed by the United Energy Group on Monday. The Hong Kong-listed upstream oil and gas firm targets to enter the Middle Eastern and North African markets.

The deal would transform United Energy Group into a medium-sized international independent oil and gas firm having a varied portfolio of properties while resulting in causing a further expansion on its development potential.

Kuwait Energy is engaged in exploring, developing, evaluating and producing activities in many nations which includes Yemen, Iraq, Oman and Egypt as informed by United Energy.

United Energy, which has got its headquarters in Hong Kong with offices in Beijing and Pakistan, has decided to purchase $491 million in the Kuwait Energy’s shares as per the filings.

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The agreement would provide Kuwait Energy with an enterprise value of $900 million, as per a person aware of the transaction.

So far, the most active sector in terms of M&A deal value of the year has been the energy and power sector, making up for some $117 billion or 14.3 per cent of the region’s complete deals.

United Energy was founded in the year 1992. It acquired the assets of British Petroleum in Pakistan in the year 2011 for $775 million and has greatly invested in that nation, as per the website of the company.

United Energy is the fourth-biggest energy and power firm listed on the Hong Kong bourse and is looking for more opportunities for expansion and growth.

Zhang Hongwei—Chairman of United Energy has got a seventy-one per cent controlling stake in the firm.

The person in knowledge of the deal said that JP Morgan gave advise to United Energy regarding the transaction, while Holt & Co, an energy sector investment bank—Tudor and Pickering gave advise to Kuwait Energy.

Kuwait Energy was not available immediately when requested to comment on the matter.

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