Vaalco and Transglobe to merge

Combination of the independent E&P firms will be Africa-focused

Houston-headquartered independent Vaalco and Calgary-based Transglobe are merging. The two E&P firms have signed a definitive arrangement agreement under which Vaalco will acquire Transglobe shares in a “stock-for-stock" combination worth $307mn. Vaalco shareholders will own 54.5pc of the combined company while Transglobe stakeholders will take the remaining 45.5pc. The merger “will create a world-class Africa-focused E&P company” with a combined portfolio of “low-risk, high return assets” in Egypt, Gabon, Equatorial Guinea and Canada and “with significant future growth potential”, the companies say. Vaalco's contribution includes the majority stake in the Etame field in Gabon, while