Heritage Oil is hoping to consumate its $6bn merger with Turkey’s Genel Energy and become the niftily-named HeritaGE. An agreement was reached earlier this month on one of the biggest hurdles, Genel’s $1.1bn liability to the Kurdistan Regional Authority: Genel’s investment would provide some of the infrastructure needed to capitalise on Heritage’s holdings in Kurdistan and Uganda.
But what’s this in Heritage’s interim results today?
Heritage has recently been made aware of an investigation by the Financial Services Authority (“FSA”) that could potentially affect the ability of certain members of Genel’s operational management team to assume their proposed roles in the combined entity. Heritage understands that relevant members of the Genel team are assisting the FSA with a view to bringing this matter to a swift conclusion. Heritage will update the market on these issues when it is in a position to do so.
The shares were off as much as 7.8 per cent this morning.
Heritage: In for a penny, in for a pound in Kurdistan (FT Energy Source, 04/08/09)
Heritage and Genel unveil $6bn merger (FT, 09/06/09)