Valuation gap widens post Canada acquisition
Reiterate Overweight rating after Canada acquisition. Canada/US-listed oil exploration and production (E&P) company TGL now trades 60% below peers on EV/2P reserves of USD4.7/bbl, after including the recently (Dec-16) acquired oil/gas assets in Canada (17.8mn bbl net 2P reserves). We incorporate the new assets into our valuation (100%-ownership), raising our 12M TP by 22% to USD2.9/share (CAD3.8/share) ~70% above the current share price. c50% of opex in Egypt (c75% of production) are in EGP, making TGL a beneficiary of EGP floatation. Our TP puts TGL 40% below peers’ EV/reserves to account for revenue concentration in Egypt.
TransGlobe Energy is engaged in oil and gas exploration, development and production and the acquisition of properties within the Arab Republic of Egypt and the Republic of Yemen.
CI Capital is a diversified financial services group and Egypt’s leading provider of leasing, microfinance, and investment banking products and services.
Through its headquarters in Cairo and presence in New York and Dubai, CI Capital offers a wide range of financial solutions to a diversified client base that include global and regional institutions and family offices, large corporates, SMEs, and high net worth and individual investors.
CI Capital leverages its full-fledged investment banking platform to provide market leading capital raising and M&A advisory, asset management, securities brokerage, custody and research. Through its subsidiary Corplease, CI Capital offers comprehensive leasing solutions, including finance and operating leases, and sale and leaseback, serving a wide range of corporate clients and SMEs. In addition, CI Capital offers microfinance lending through Egypt’s first licensed MFI, Reefy.
The Group has over 1,700 employees, led by a team of professionals who are among the most experienced in the industry, with complementary backgrounds and skill sets and a deep understanding of local market dynamics.
CI Capital has been recognized as the “Best Investment Bank in Egypt” by EMEA Finance for four years running from 2013-2016, and by Global Finance in 2014 and 2015.
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