AIM-listed energy group Savannah Energy PLC (AIM:SAVE) deal with Cameroon’s national company announced on Thursday ticks all the right boxes for house broker Shore Capital Markets.
Savannah Energy plc signed a share purchase agreement with Société Nationale Des Hydrocarbures (SNH), for the sale of 10% of the issued share capital in Cameroon Oil Transportation Company (COTCo).
“We believe that this is a very neat deal for Savannah,” said Shore Capital, with analysts noting the equitable terms of the tie-up, “generating cash proceeds which will go a long way to offsetting the final completion amount”.
“In addition, we believe that it should further enhance Savannah and SNH’s strong alignment of interests as partners in this section of the Chad-Cam energy transmission system,” said Shore Cap.
Shore Cap maintains a buy recommendation on Savannah’s shares, but remains “under review” pending forthcoming publication of its AIM admission document and lifting of the group’s current trading suspension.
Savannah’s shares were suspended on December 12 2022 after announcing a reverse takeover of PETRONAS International Corporation, per AIM listing rules.