Premier Oil creditors commit to Chrysaor merger

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Premier Oil PLC (LON:PMO) shares rose around 9% in Tuesday’s early deals as creditors confirmed their backing for the transformational proposed merger with Chrysaor.

The merger will leave Premier’s present shareholder register with only 5.45% of the new company, but, will restructure the resultant group’s debt profile.

READ: Premier Oil to be transformed by Chrysaor deal

Significantly, the new company will have Chryaor’s private equity support and with daily production of around 250,000 barrels of oil per day it will have a leading position in the North Sea.

Today, Premier announced that it has now received the requisite level of support from each class of its creditors for the proposed merger.

Creditors have entered into a binding support letter which provides irrevocable commitment to vote in favour of the plans and agree to waive covenants through to the completion of the transactions.

Premier noted that the merger transaction is expected to complete by the end of first quarter 2021.

In London, Premier shares rose by 1p or 9% to trade at 12.36p.

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