NCUA shows support for Network Credit Union mergers

first_img 8SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr The top leaders of the National Credit Union Administration said Tuesday that they support an alternative option that would allow credit unions to merge some operations.The agency’s general counsel issued a legal opinion last week that said credit unions are allowed under the Federal Credit Union Act to merge by forming a Network Credit Union.Under the concept, credit unions could achieve economies of scale by merging some functions such as IT or a call center while maintaining their own names and some level of autonomy.Speaking at the Credit Union National Association’s Government Affairs Conference, NCUA Vice Chairman Richard Metsger said giving credit unions that option was one of his 2016 priorities.“Building on the Network Credit Union concept…I will work to remove roadblocks to credit unions who wish to come together under the umbrella of one stronger charter, but who continue to operate under their own identities in their communities, seamless to their members, but now with added resources and reduced compliance and regulatory burden at the local level,” Metsger said.Speaking to Credit Union Journal at the conference, NCUA Chair Debbie Matz said “it is something that can be tried, so now the ball is in the court of the credit unions that are interested.” continue reading »last_img read more

Zenith becomes majority owner of Tilapia oilfield

first_imgPrivateplacements Zenith addedthat it was now working to conclude the necessary regulatory process in theRepublic of the Congo to approve the transfer of ownership, as well asfinalising negotiations for a new 25-year licence for Tilapia. AAOG’s fully-owned subsidiary in question is Anglo African Oil & Gas Congo (AAOG Congo) which has a 56 per cent majority interest in the Tilapia oilfield. The renegotiations for the terms of acquisition started back in March after AAOG initially approved the sale of an 80 per cent stake in AAOG Congo to Zenith Energy in January 2020. Andrea Cattaneo, CEO of Zenith, said: “I am delighted to have now fully completed the acquisition of Tilapia, especially under the recently renegotiated highly favourable terms. “At the same time, our technical team is making all the necessary operational preparations for planned drilling activities in well TLP-103C“. “Our focus is now on finalising the necessary regulatory process for the transfer of ownership, as well as concluding negotiations for a new 25-year licence. Zenith also said on Tuesday that it received conditional approval for a private placement to issue up to 60,000,000 new common shares to raise gross proceeds of up to £540,000 ($673,010). The company statedthat it would implement a series of cost-cutting measures and managementchanges in the newly bought company to maximise efficiency in the current lowoil price environment. Aerial view of the AAOG Congo site; Source: AAOG The companyhas completed two fully subscribed offerings, one in the United Kingdom and theother in Norway. “The Republic of the Congo is an enormously prospective hydrocarbon province which has proven itself to be a very supportive jurisdiction for junior, independent oil companies with ambitious development objectives such as Zenith. “We have obtained exceptional value for Zenith shareholders, and I am excited about our potentially transformational development opportunities in the Republic of the Congo at Tilapia. Zenith said on Tuesday that the 100 per cent stake in AAOG Congo and related intercompany loans were bought for a total consideration of £200,000 ($249,271). Canadian oil and gas company Zenith Energy has completed the acquisition of Anglo African Oil & Gas’ subsidiary, which is the operator of the Tilapia oilfield located in the Republic of the Congo. The buy also means that AAOG has novated 100 per cent of the intercompany loans with AAOG Congo to Zenith as of the date of completion, equivalent to around £12.5 million ($15.58 million). It is worth noting that AAOG Congo has approximately $5.3 million in receivables. The price of the acquisition was arranged in mid-April when Zenith and AAOG entered into a conditional deed of variation, replacing the previous agreement between the parties. According to the company, the placements have attracted the participation of several existing high net-worth private investors, an existing institutional investor, as well as a director of the company. Per the termsof the amended share purchase agreement, completion of the acquisition took placewithin one business day after AAOG’s shareholder approval at the generalmeeting held on Monday, 4 May 2020.last_img read more