M&As this week: Basic Energy Services, United Energy Group, Soco International

Basic Energy Services has declined a merger proposal from Key Energy Services.

The proposal aimed to form a production-focused oilfield services company, in which Key Energy shareholders would hold a 51% stake and the remaining would be held by Basic Energy shareholders.

The proposal was rejected by Basic Energy’s board of directors as the company is focused on pursuing an independent growth strategy.

Basic Energy Services is a provider of well site services, while Key Energy Services is a provider of oilfield services. Both are based in the US.

United Energy Group (UEG) has entered an agreement to purchase a 100% stake in Kuwait Energy for $650.85m.

Executed through a subsidiary of UEG, the acquisition includes the purchase of Kuwait Energy’s shares and convertible shares for $490.74m and $160.11m, respectively.

Based in Hong Kong, UEG is an oil and gas exploration company, while Kuwait Energy is a Kuwait-based oil and gas company.

The acquisition is expected to strengthen and expand UEG’s footprint in the Middle Eastern and North African oil and gas markets.

Soco International has entered an agreement to acquire Merlon Petroleum El Fayum Company for $215m.

The target company is the owner and operator of the El Fayum concession located in the Western Desert, 80km south-west of Cairo, Egypt.

Soco plans to pay $136m in cash and issue approximately 66 million new shares to Merlon, as per the terms of the agreement.

Based in the UK, Soco International is an oil and gas company, while Merlon Petroleum El Fayum Company is an Egypt-based subsidiary of oil and gas exploration and production company Merlon International.

Dominion Energy has proposed to purchase all the outstanding common units in Dominion Energy Midstream Partners.

Dominion Energy plans to issue 0.2468 common shares for each Dominion Energy Midstream common unit held, as part of the transaction.

Dominion Energy is an energy transmission and production company, while Dominion Energy Midstream Partners is the owner of liquefied natural gas terminalling, storage, regasification and transportation assets. The two firms are based in the US.