London Stock Exchange-listed investment trust RIT Capital Partners has agreed to sell private Norwegian company Agora Oil and Gas to Edinburgh-based exploration company Cairn Energy.
Cairn will pay £281million for Agora, in cash and Cairn shares, RIT said in a statement.
With cash proceeds of £114 million, RIT has booked a 2.8x return multiple on its original £41 million investment.
The remaining proceeds will go to RIT’s co-investors, which include Lord Rothschild’s family office and philanthropic foundation, as well as management and employees.
Law firm Taylor Wessing advised RIT on the sale, which is subject to approval by the relevant regulatory authorities.
RIT's original investment came just one month after Agora was founded in October 2009. Agora has participated in 10 low-risk exploration and appraisal wells since then, resulting in only one dry hole.
Lord Rothschild, chairman of RIT, said in a statement: “Agora was only established just over 2 years ago. The achievement of the management team since then has been a remarkable one. We’re proud and delighted to have been their founding partner.”