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Trinidad: Rex International divests stake in Steeldrum Oil Company
09 Oct 2018
- Divestment of non-core assets in Trinidad adds US$1.54 million in liquid assets
- Divestment has potential upside with additional deferred consideration
- Continued focus to bring core assets in Oman and Norway into production
Rex International Holding has divested its indirect holdings in Steeldrum Oil Company in Trinidad & Tobago, an available-for-sale asset of the Group. This is in line with the Group’s strategy to focus its efforts on bringing its oil discovery assets in Oman and Norway to production in 2019 and 2020 respectively.
On 16 July 2018, the Company announced that its indirect wholly-owned subsidiary Rex Caribbean Holding (RCH) and the other shareholders in Steeldrum had signed a Sale and Purchase Agreement ('SPA') to sell their respective stakes in Steeldrum to Columbus Energy. Rex held a 25.72% stake in Steeldrum, which had been reclassified as an available-for-sale investment of the Group since December 2016. The Company announced the completion of the transaction in a separate announcement dated 8 October 2018.
Mr Dan Broström, Executive Chairman of Rex International Holding, said:
'The proceeds received thus far from the Steeldrum transaction is an aggregate 28,077,549 Columbus Shares with a value of approx. US$1.54 million. This is higher than our book value of RCH’s holding in Steeldrum of US$1.11 million as at 30 June 2018. There may be further upside for additional deferred consideration (based on Columbus’ closing share price of GBX 4.20 and an exchange rate of GBP 1 : USD 1.306 as at 5 October 2018) if certain events relating to the Cory Moruga and Innis-Trinity fields as contemplated under the SPA materialise. The divestment is in line with our strategy to focus on our core assets and strengthens our financial position as we continue to focus and invest to bring our assets in Norway and Oman into production.
Source: Rex International