Rex International Holding Limited disclosed Tuesday that the company has completed Friday the sale of a part of its majority stakes in Lime Petroleum Norway AS (LPN) and Masirah Oil Ltd. (MOL) to Schroder & Co Banque S.A.
"The Board considers the Transactions to be in the interest of and be beneficial to the Group as it allows the Group to lower its majority shareholding in LPN and MOL, hence reducing the Group's risk exposure, while maintaining its focus on the assets in Norway and Oman held by these entities. Rex will continue to have majority stakes and board representation in LPN and MOL pursuant to the Transactions," Rex said in Tuesday's press release.
The firm's subsidiary sold around 10 percent of the entire issued share capital of LPN to Schroders for $5 million. Under the transaction, if LPN require additional financing for its operations and financing obligations, Rex will contribute on Schroders' behalf such amounts required to be contributed by Schroders on a pro rata basis in order to maintain Schroders' 10 percent shareholding in LPN until Dec. 31, 2017.
Meantime, the firm's other unit Rex Oman Ltd. sold around 5 percent of MOL's total issued share capital to Schroders for $4.75 million. Like the LPN deal, the MOL Carry Commitment will see Rex Oman contributing on Schroders' behalf any amounts required to be contributed by Schroders on a pro rata basis in future fund raising required by MOL for operations and financing obligations, such that Schroders' shareholdings in MOL will remain at 5 percent.
The MOL Carry Commitment shall be for a period of up to the declaration of commerciality for Oman's Block 50 concession area or where the Omani Government may grant an extension for the works to be carried out in the country, the MOL Carry Commitment shall be extended to Dec. 31, 2017.
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