Energean pulls assets deal with Carlyle

(Sharecast News) - UK-based gas producer Energean has pulled its $945m deal to sell some of its assets to private equity fund Carlyle due to pending regulatory approvals in Italy and Egypt. The two parties were unable to agree on an extension of a longstop date beyond March 20, Energean said in a statement on Friday.

The two companies reached an agreement last June which would allow Carlyle to form a new Mediterranean-focused oil and gas company led by former BP chief executive Tony Hayward using assets in Egypt, Italy and Croatia.

Energean chief Mathios Rigas said the decision was made "in the best interests of all our stakeholders, including our employees, investors, host governments, and partners", who rely on "clarity of ownership".

"While I am disappointed that Carlyle was unable to obtain the necessary approvals in Italy and Egypt under the terms of the sale and purchase agreement, I want to reaffirm that this outcome does not change our strategic direction or our commitment to growth and shareholder returns."

"Italy, Egypt and Croatia will remain core pillars of our operations, and we look forward to driving further investment, development, and value creation in all countries. Our commitment to the Mediterranean and the wider region is unwavering, and we will continue to expand our portfolio, support energy security, and deliver sustainable growth in the years ahead."

Reporting by Frank Prenesti for Sharecast.com