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Government appoints Bank of America as transaction advisor for Aker deal

Ken Ofori-Atta and Matthew Opoku Prempeh

Minister of Energy Matthew Opoku Prempeh (right) and Minister for Finance Ken Ofori-Atta (left) are leading the implementation of the government's new upstream policy

The government has appointed Bank of America Securities (BofA) as the transaction advisor for its planned acquisition of 37% interest in the Deep Water Tano Cape Three Points (DWT/CTP) concession operated by Aker Energy Ghana Ltd and a 70% stake in South Deepwater Tano (SDWT) operated by AGM Petroleum Ghana Ltd.

Acquiring a stake in these operations is in line with the government’s new policy direction for the upstream sector.

The proposed acquisition has already been approved by cabinet and Parliament subsequently approved a loan to facilitate the commencement of negotiations between government, Aker Energy and AGM.

The choice of Bank of America Securities was driven by Bank of America’s track record as one of the world’s leading financial institutions, with proven expertise in notable international landmark oil and gas transactions, and for its reputation as one of the world’s leading investment banks and advisory companies, with a global presence.

The bank also has an established and ongoing relationship with the Government of Ghana and has worked extensively on various transactions including the 2021 Eurobond transaction.

To meet the end-of-third-quarter timeline set for the deal, the Ministry of Finance requested and gained approval from the Public Procurement Authority to recommend and procure the services of Bank of America (BofA) Securities as transaction advisors through single sourcing. The approval for this transaction advisory service is valid until 31 December 2021.

The transaction advisors will be required to provide a fairness opinion/independent valuation as well as a general advisory service on the transaction.

As part of the approval, the Public Procurement Authority pegged the transaction fee to be paid to Bank of America at US$750,000.00 and a retainer fee of US$125,000.00 per quarter.

Wilberforce Asare 

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