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Tullow Oil is yet to find a suitable date to start selling its shares at the Uganda Securities Exchange (USE) where a dozen other companies are listed for trading
Mr Jimmy Kiberu the company’s spokesman in Uganda said Tullow is reviewing new timelines for its cross listing. The United Kingdom-based company has about 885 million shares listed on both the Irish and London Stock Exchanges in Europe.
The same shares were due to be cross listed on the USE in Kampala in April this year at their prevailing market price–each share was valued at Shs39, 200 on Tuesday. However, the transaction was postponed after the government delayed the approval of the company’s purchase of Heritage Oil and Gas interest in oil Block 1 and 3A in western Uganda. But the government has since approved the process giving way to the purchase of Heritage’s assets and cross listing of Tullow’s lucrative shares.
“Prior to the government approval of our pre-emption rights, it was not possible to proceed. But now that the approval has been given, we are going back to the drawing board to look at realistic timelines,” Mr Kiberu told Daily Monitor in an interview in Kampala on Monday.
Tullow Oil has already picked African Alliance, as the transaction advisor of the cross listing, to assist the company deal with all the relevant regulatory issues of Uganda’s capital markets industry. “Certainly it’s going to happen before the end of this year,” Mr Kiberu said when asked if the company would pull of the listing this year.
Tullow Oil through its local subsidiary, Tullow Uganda Operations, is one of the three oil exploration companies that have found hit at least 2 billion barrels of oil in Uganda.
Oil production by the company is scheduled to kick off next year but on a small scale.
Mr Elly Karuhanga, the President Tullow Uganda Operations’ says the cross listing is intended to give Ugandans a chance to benefit from the success story of the British company.
The cross listing of Tullow’s shares in Uganda, is expected to ease accessibility to the shares from within the country, just like it is with those of companies like Stanbic Bank Uganda and Dfcu Bank, which are listed on the USE.
Tullow Oil is yet to find a suitable date to start selling its shares at the Uganda Securities Exchange (USE) where a dozen other companies are listed for trading
Mr Jimmy Kiberu the company’s spokesman in Uganda said Tullow is reviewing new timelines for its cross listing. The United Kingdom-based company has about 885 million shares listed on both the Irish and London Stock Exchanges in Europe.
The same shares were due to be cross listed on the USE in Kampala in April this year at their prevailing market price–each share was valued at Shs39, 200 on Tuesday. However, the transaction was postponed after the government delayed the approval of the company’s purchase of Heritage Oil and Gas interest in oil Block 1 and 3A in western Uganda. But the government has since approved the process giving way to the purchase of Heritage’s assets and cross listing of Tullow’s lucrative shares.
“Prior to the government approval of our pre-emption rights, it was not possible to proceed. But now that the approval has been given, we are going back to the drawing board to look at realistic timelines,” Mr Kiberu told Daily Monitor in an interview in Kampala on Monday.
Tullow Oil has already picked African Alliance, as the transaction advisor of the cross listing, to assist the company deal with all the relevant regulatory issues of Uganda’s capital markets industry. “Certainly it’s going to happen before the end of this year,” Mr Kiberu said when asked if the company would pull of the listing this year.
Tullow Oil through its local subsidiary, Tullow Uganda Operations, is one of the three oil exploration companies that have found hit at least 2 billion barrels of oil in Uganda.
Oil production by the company is scheduled to kick off next year but on a small scale.
Mr Elly Karuhanga, the President Tullow Uganda Operations’ says the cross listing is intended to give Ugandans a chance to benefit from the success story of the British company.
The cross listing of Tullow’s shares in Uganda, is expected to ease accessibility to the shares from within the country, just like it is with those of companies like Stanbic Bank Uganda and Dfcu Bank, which are listed on the USE.
