(Reuters) Capricorn Energy said on Thursday it was ditching its plan to merge with Africa-focused Tullow Oil in favour of a combination with Israel’s NewMed Energy, following shareholders’ opposition to deal .
Under the proposed combination, NewMed unitholders will receive 2.337344 new Capricorn shares for each unit held, the companies said in a joint statement
A special cash dividend of $620 million is also proposed to be given to Capricorn shareholders prior to the deal, they said.
Tullow’s offer to buy Capricorn for $827 million had met with strong opposition from Capricorn’s shareholders, who have called for a strategic review of the business.
Tullow did not immediately respond to a request for comment.
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