Vaalco Energy Inc - Houston, Texas-based exploration and production in West Africa - Announces quarterly dividend and share buyback ahead of its planned all-share merger with Calgary, Alberta-based TransGlobe Energy Corp. Vaalco declares dividend for financial third quarter of $0.0325 per share and affirms plan to nearly double its annualised dividend to $0.25 following the TransGlobe merger, which was announced last month. Also announces $30 million share buyback, which is conditional on the merger being completed.
Vaalco shareholders will hold about 54.5% of the combined company, with shareholders of TransGlobe owning the remaining 45.5%. ‘By combining these two companies we are able to build scale, a stronger balance sheet and a more material and diversified baseline of production,’ Chief Executive Officer George Maxwell says. ‘This should allow us to generate meaningful cash flow to fund increased shareholder dividends, share buy-backs and potential supplemental shareholder returns at a rate that would not be achievable by either of Vaalco or TransGlobe on a standalone basis.’
Current stock price in London: 450.00 pence
12-month change: up 50%
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