The consideration will comprise $21.7 million in cash and the issue to Dana of 1,400,000 new ordinary shares in Sibir valued at 250 pence per share, post Sibir's planned 10 for 1 consolidation announced today. As Sibir is an existing shareholder in OAO Evikhon, its purchase of Dana's interest will be subject to the normal approval process of the Federal Anti-Monopoly Service of the Russian Federation. Sibir shareholder approval to the issue of the new shares to Dana will be sought at an EGM expected to take place before the end of December 2004. Approval is expected, but if it were not granted Sibir has undertaken to procure settlement of the whole $28 millon consideration in cash.
Completion of the transaction is expected to take place in early 2005.
Tom Cross, Dana's Chief Executive, commented:
"This divestment parallels Dana's recent exit from Indonesia and is in line with the Company's strategy to maximize near-term returns from non-core assets and invest those profits into Dana's principal growth areas of the North Sea and West Africa, where an extensive drilling program is planned over the next 2 years."
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