Energean PLC (LSE:ENOG) has announced a deal to cash out of Egypt, Italy, and Croatia.
The transaction with Carlyle Partners has an enterprise value of up to $945 million, unlocking payments of $820 million – with $504 million being paid upfront.
Energean highlighted that the transaction will represent “more than a threefold return” on the assets that were acquired in 2020.
As a result, it expects to pay off $450 million of debt and return $200 million to shareholders via a special dividend.
It is expected to be completed by the end of the year, subject to customary regulatory and antitrust approvals.
Going forward, Energean will be focusing on ‘gas-weighted’ interests in Israel and Morocco.
"This deal represents an exciting new chapter for Energean,” chief executive Mathios Rigas said in a statement.
“Today we have realised a significant value made when we acquired this portfolio over four years ago.
“The transaction delivers on our strategy to maximise value for our shareholders. It maintains our highly disciplined approach to capital allocation, demonstrated by the accretive transaction metrics, coupled with an anticipated special dividend."
Rigas added: “This transaction unlocks management capacity and financial flexibility to drive future growth.
“Our focus will now be to create enhanced value from our Israel assets, and evaluate new opportunities that fit Energean's key business drivers: paying a reliable dividend, deleveraging, growth, and our commitment to Net Zero.”
In London, Energean shares gained 49p or 4.75% to change hands at 1,081p.