Genel founders on the verge of £100m payout

Suzie Neuwirth
NAT ROTHSCHILD and five other founders of Genel Energy are edging closer to receiving a bumper bonus payout, if shares continue to reach record highs.

The billionaire financier and other founders – who include former BP chief Tony Hayward – will receive around £100m in total, if shares in the Kurdistan-focused oil explorer close higher than £12.50 for 20 trading days out of 30.

The exact amount the founders would receive depends on the average share price across the period, but Rothschild would be likely to collect around £50m.

Shares in the London-listed company hit £11.13 last week, with investors clamouring to buy the stock after a number of analysts published encouraging research reports. Some raised their target price on the stock to £12.50 or higher.

“Genel is a hydrocarbon leader in the Kurdistan Region of Iraq (KRI), in terms of current/projected oil and gas production, diversity of licenses and remaining upside potential, and through its strong Turkish and KRI relationships,” said Canaccord Genuity, which raised its target price to £12.50.

Genel was given a boost last week when the Kurdistan regional government announced plans to being piping oil to Turkey without the Iraqi central government’s approval.

Kurdistan has previously been unable to exploit its burgeoning oil industry as Baghdad insisted it retains control over Iraq’s energy resources.