New name revealed for Premier-Chrysaor combination
UK oil and gas company Premier Oil will be renamed Harbour Energy following the completion of its merger with Chrysaor, which will create the largest London-listed independent oil and gas company.
Premier reached an agreement with Harbour’s UK operating company Chrysaor for a proposed all-share merger between Premier and Chrysaor and the reorganisation of Premier’s existing debt and cross-currency swaps back in early October 2020.
By early November, Premier received support from creditors for the proposed merger with Chrysaor.
In an update on Wednesday, Premier said that the general meeting of its shareholders to approve the transaction with Chrysaor has been scheduled for 12 January 2021.
The merger is expected to complete by the end of the first quarter of 2021, as previously guided.
On completion of the transaction, Premier will be renamed Harbour Energy plc.
Premier-Chrysaor tie-up: management
It is anticipated that the board of Harbour Energy will comprise 11 directors, six independent non-executive directors, two non-executive directors appointed by funds managed by EIG Global Energy Partners (EIG), and three executive directors.
Blair Thomas, currently CEO of EIG, will be the Chairman of the Combined Group from completion. Blair has over 30 years’ experience in the investment management business, with a focus on energy and energy-related infrastructure and extensive management and board experience.
As previously announced, Linda Cook will be CEO of Harbour Energy and Phil Kirk will be President and CEO Europe from completion.
It is expected that a new Chief Financial Officer will be identified prior to completion of the merger.
From completion, Harbour Energy’s board will also include Simon Henry (Senior Independent Non-Executive Director), Anne L Stevens (Independent Non-Executive Director), Anne Marie Cannon (Independent Non-Executive Director), G. Steven Farris (Non-Executive Director).
It is expected that the three additional independent non-executive directors will be announced prior to completion.
Furthermore, it is expected that each of the current non-executive directors of the board of Premier Oil, other than Anne Marie Cannon, will step down from the board with effect from the completion of the transaction.
According to Premier, Harbour Energy will be the largest London-listed independent oil and gas company by production and reserves.
The combined group will have a lower carbon intensity than the average UK oil and gas producer, with targets in place for further improvements, and a commitment to achieving ‘Net-Zero’ greenhouse gas emissions by 2035.
Premier has received the requisite level of creditor support for the transaction and expects to launch the restructuring plan processes through the issuance of a practice statement letter.
To date, European Commission merger control clearance has been received and regulatory approval from the Norwegian MPE has been, conditionally, received.
Premier also noted that Tony Durrant stepped down from the board of directors on 16 December 2020.
As previously announced, Richard Rose will be the Interim Chief Executive until completion of the transaction, in addition to his current role as Finance Director.
Stuart Wheaton, currently Chief Operating Officer, will assume the role of Interim Deputy Chief Executive.