Ok, so its not 5% dilution, its more existing shareholders in PMO will only have 5% of the shares in the ‘merged’ company.
Still need to see the terms(looks complicated), but from that Article:
As part of the new merged business:
5% owned by current Premier Oil shareholders equity
18% owned by converting Premier Oil creditors to equity - those that loaned Premier Oil funds through debt(bonds), or due cash payments.
39% owned by Harbour Energy
I think Chryasor will own the rest?
Premier oil in the statement had an mcap of 156m, with 500m in debt.
The new company will have an mcap of about 2.6bn.
It actually looks like a very complicated deal, with creditors converting debt to equity in Premier Oil.
The 250k BOPD the new group will be able to produce each day is huge, and so is the 4bn from offset table tax losses.
I don’t know if that helps or not.