M&As this week: Mubadala Investment Company, Tanager Energy, Waterous Energy Fund

Mubadala Investment Company plans to divest a part of its interest in Compania Espanola de Petroleos SAU (CEPSA) to a strategic partner.

The interest may be offered either in the form of shares or an initial public offering (IPO).

Based in the UAE, Mubadala is a state-owned holding company, while CEPSA is an integrated energy firm based in Spain.

The funds raised from the divestment will be utilised by Mubadala towards its expansion plans.

Tanager Energy has signed a letter of intent to purchase oil and gas companies Titan Chalk and Haloroc Technologies for $110.16m.

Tanager Energy will change its name to HB2 Energy following the acquisition, which will be funded through the issuance of shares priced at C$0.16 ($0.13) each and three-year warrants worth $11.06m at an exercise price of C$1 ($0.77) a share.

The acquisition is expected to strengthen Tanager Energy’s business operations.

Waterous Energy Fund (WEF) has signed an agreement to acquire the remaining interest in Cona Resources at a price of C$2.55 ($1.97) a share.

WEF will own a 100% interest in Cona Resources, following the acquisition.

Based in Canada, WEF is a private equity firm, while Cona Resources is an oil and gas company.

The acquisition is expected to strengthen WEF’s oil and gas investment portfolio.

Tallgrass Energy GP (TEGP) has signed a definitive agreement to merge with Tallgrass Energy Partners (TEP).

TEGP will acquire 47.6 million common shares of TEP by issuing two Class A shares of the company for each outstanding common unit of TEP.

TEGP will issue a total of 95.2 million Class A shares, representing a 62.1% stake in the company.

TEGP is executing the transaction through its wholly-owned subsidiary Tallgrass Equity. The company will change its name to Tallgrass Energy LP, following the transaction.

TEGP and TEP are both midstream companies based in the US.

The transaction is expected to strengthen TEGP’s business operations.

Canacol Energy has raised C$1.9m ($1.51m) by divesting 4.3 million shares in Interoil Exploration and Production ASA.

Based in Canada, Canacol Energy is a natural gas and oil exploration and production company, while Interoil is a Norwegian oil and gas company.

Oil and Natural Gas Corp (ONGC) plans to acquire the remaining stake in ONGC Petro Additions from gas processing and distribution company GAIL India.

ONGC is an oil and gas company, while ONGC Petro Additions is a producer and supplier of petrochemical products.

All the companies involved in the transaction are based in India.

The acquisition is expected to strengthen ONGC’s petrochemical operations.

Itochu Corporation (Itochu) has signed an agreement to acquire Shell Iraq from Shell EP Middle East Holdings for $550m.

Shell Iraq owns a 19.6% stake in the West Qurna 1 oil field, which is located 65km from Basra city in the southern part of Iraq.

The current partners in the oil field are ExxonMobil Iraq (32.7%), PetroChina (32.7%), SIBV (19.6%), PT Pertamina (10%) and Oil Exploration Company (5%).

The acquisition is being executed through Itochu’s subsidiary CIECO West Qurna and includes $144m debt.

Itochu is a Japanese trading company, while Shell EP Middle East is a subsidiary of Royal Dutch Shell, an oil and gas company based in the Netherlands.

The acquisition is expected to strengthen Itochu’s business operations in Iraq.