Genel Energy’s CEO Tony Hayward has already reaped a huge 12 million pound ($18.7 million) profit from his involvement in the reverse takeover of Genel Energy by London-listed cash vehicle Vallares in late 2011.
The windfall represents a tenfold profit over Hayward’s initial stake in the Vallares cash vehicle.
The Ex-BP CEO, along with Vallares co-founders Nathaniel Rothschild and two other City figures, was entitled to swap the ‘B’ shares awarded to him as a Vallares founder in exchange for his initial stake in the $2 billion cash vehicle if an acquisition was made to deadline.
The founders are bound by lock-in arrangements which prevent them from selling the shares until 21 November 2012.
“The shares were allocated to the Founders in return for their initial capital commitment of £100 million to the Company and as an incentive to source a suitable acquisition,” according to a Genel company statement. “The investment was risk capital and the Founders stood to suffer a loss of up to £20m if a successful acquisition had not been executed.”
If Genel’s share price hits 12.50, Hayward and his fellow founders will be in for another payday, as a further option under ‘C’ shares granted to the founders will them 15% of any gains the shares make about 25% of the float price of 10.
Genel’s shares closed on the London Stock Exchange 2.87% up at 870 pence on Friday.
The company will invest to double production at the Tawke field in Iraqi Kurdistan it works with Norway’s DNO, and recently purchased the Chia Surk block in region from a subsidiary of Longford Energy and Petoil Petroleum.
The company swore off merging with fellow Kurdish explorers on Monday due to the high premiums an acquisition bid would attract, and is instead looking to Libya for opportunities.
Gulf Keystone has been subject to feverish speculation about a buy-out and DNO is consolidating after merging the assets of the UAE’s RAK Petroleum in exchange for shares.
Hayward left BP after the Macondo well oil spill in the Gulf of Mexico with a £10m pension pot.
