By Shadia Nasralla
(Reuters) – A deal for Carlyle to buy assets from Energean for up to $945 million is at risk of collapse as some regulatory hurdles are yet to be cleared ahead of a deadline this week, Energean said on Monday.
The two companies reached an agreement last June which would allow private equity fund Carlyle to form a new Mediterranean-focused oil and gas company led by former BP CEO Tony Hayward on the basis of Energean assets in Egypt, Italy and Croatia.
Energean shares were down 7% at 1052 GMT.
“Certain regulatory approvals in Italy and Egypt have not yet been obtained by Carlyle (or waived) and the Company has no assurance that such conditions will be satisfied on or before 20 March 2025 in accordance with the terms of the binding Sale and Purchase Agreement,” Energean said.
It added that no extension has yet been agreed.
“Therefore, (absent an extension being agreed) the transaction may be terminated.”
A spokesperson for Carlyle said it has been working hard to satisfy the conditions to close the transaction but despite its best efforts several conditions remain outstanding.
Energean Chief Executive Mathios Rigas told Reuters the outstanding approvals related to Italy saying Carlyle had not proved it would fund guarantees for its subsidiary.
An extension to the deadline would not make sense if the problem is structural, he said, adding that Energean’s current dividend policy will stand should the deal not go ahead.
Rigas said he was happy to keep the assets which produce 40,000 barrels of oil equivalent per day as they also provide diversification beyond Energean’s flagship gas fields offshore Israel.
Energean is due to publish its results on Thursday.
(Reporting by Shadia Nasralla and Arunima Kumar in Bengaluru; Editing by Rashmi Aich, Louise Heavens and David Evans)
