European Event-Driven Analyst

Jesus Rodriguez Aguilar

Event-Driven

<ul>
<li>The NewMed/Capricorn reverse takeover should be approved at an EGM. Investors opposing the deal (mainly event-driven funds) hold in aggregate at least c. 33.6% of cash-rich Capricorn. </li>
<li>The approval threshold is 50% (vs. 75% in Tullow's merger), which should favour the approval. But the +6.9% spread (as of 28 November), reveals it'll be challenging.</li>
<li>First Tullow sought CNE's cash pile, now NewMed seeks CNE's Middle East assets and a coveted London listing. Unless NewMed sweetens the terms, this deal may not happen either.</li>
</ul>


The NewMed/Capricorn reverse takeover should be approved at an EGM. Investors opposing the deal (mainly event-driven funds) hold in aggregate at least c. 33.6% of cash-rich Capricorn. 
The approval threshold is 50% (vs. 75% in Tullow's merger), which should favour the approval. But the +6.9% spread (as of 28 November), reveals it'll be challenging.
First Tullow sought CNE's cash pile, now NewMed seeks CNE's Middle East assets and a coveted London listing. Unless NewMed sweetens the terms, this deal may not happen either.


NewMed Energy/​Capricorn: Positive Spread

<ul>
<li>Capricorn Energy withdrew the recommendation to merge with Tullow to instead merge with NewMed Energy LP thorugh a reverse takeover  to create one of the largest European E&amp;P companies.</li>
<li>Capricorn shareholders will receive an upfront dividend and a residual interest in a MENA gas champion (which, unlike Tullow, does not need Capricorn's large cash balance to develop fields).</li>
<li>The deal offers certainty for Capricorn's shareholders. Chances to complete are high. Gross spread is 5.8%. Long Capricorn or setting up the spread (but NewMed is not massively liquid).</li>
</ul>


Capricorn Energy withdrew the recommendation to merge with Tullow to instead merge with NewMed Energy LP thorugh a reverse takeover  to create one of the largest European E&amp;P companies.
Capricorn shareholders will receive an upfront dividend and a residual interest in a MENA gas champion (which, unlike Tullow, does not need Capricorn's large cash balance to develop fields).
The deal offers certainty for Capricorn's shareholders. Chances to complete are high. Gross spread is 5.8%. Long Capricorn or setting up the spread (but NewMed is not massively liquid).


NewMed Energy/Capricorn: Agreed Reverse Takeover, Bye Bye Tullow

Israel

NewMed Energy LP operates as an energy company. The Company specializes in the exploration, development, production, and sale of natural gas and condensate. NewMed Energy serves customers in Israel.

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NewMed Energy LP (NWMD IT)

NewMed Energy/Capricorn: Positive Spread

Althugh the terms were greatly improved vs. the failed Tullow berger, top shareholders have spoken out against the sale to NewMed and argue that...

Jesus Rodriguez Aguilar

NewMed Energy/Capricorn: Agreed Reverse Takeover, Bye Bye Tullow

With the announcement of the combination with Tullow, Capricorn put itself up for sale. The deal with NewMed provides arguably more security to...

Jesus Rodriguez Aguilar

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

NewMed Energy/​Capricorn: Positive Spread

Althugh the terms were greatly improved vs. the failed Tullow berger, top shareholders have spoken out against the sale to NewMed and argue that...

Jesus Rodriguez Aguilar

NewMed Energy/Capricorn: Agreed Reverse Takeover, Bye Bye Tullow

With the announcement of the combination with Tullow, Capricorn put itself up for sale. The deal with NewMed provides arguably more security to...

Jesus Rodriguez Aguilar

NewMed Energy/Capricorn: Positive Spread