Bowleven PLC (LON:BLVN) has announced it is paying a £50mln special dividend – which will provide a windfall for the Monaco-based activist fund that led a management overhaul of the Cameroon-focused oiler.
With a 29% stake in the business, Crown Ocean Capital will receive a pre-tax payout of around £14.5mln; the employee share trust along with directors of the company (listed on the site as owners of the 32% of securities that are not in public hands) will share £16mln.
READ: Bowleven looks forward to new drilling as rig arrives offshore Cameroon
Bowleven has around £63mln in the bank and is due a further £19.6mln (US$25mln) once the final investment decision is made on the Etinde permit.
The AIM-listed company has 20% of Etinde - which is prospective for both oil and gas - after bringing in Lukoil (30%) and NewAge (30%).
Investors will receive 15p per share – a little over half the value of the stock on Friday.
“With the 2019 budget agreed, the board is comfortable that the company's resulting cash position will allow it to reach FID [final investment decision], with our JV partners, creating a further significant value accretive event for shareholders and immediately allowing for the payment of US$25mlnunder the terms of the Etinde farm-out agreement," said chief executive Eli Chahin.