IEG Enters Binding SPA For Sale Of Interest To Shincheon
Nautical Petroleum plc was advised that International Energy Group AG ("IEG") has entered into a binding Sale and Purchase Agreement for the sale of a 5% interest in Nautical Petroleum plc to Shincheon Co., Ltd, a company listed in Korea.
IEG has sold 63,408,290 shares from its holding in Nautical for a consideration of UK7,926,036 (12.5 pence per share). The sale is conditional on approval of the transaction by the Bank of Korea on or before 15 May 2008. This is a normal requirement for foreign investments made by Korean companies.
Nautical will be formally advised on the transfer of the shares in the prescribed manner once the transaction completes.
The price at which this transaction will complete represents a 47% premium to the closing share price of Nautical of 8.50 pence per share on 11 April 2008.
Commenting on this advice, Ian Williams, Chairman of Nautical, said, "This transaction, which was agreed at a premium to the current share price, represents a vote of confidence in the quality of the Nautical asset portfolio and the value of the Company.
"We look forward to welcoming our new Korean shareholder when the deal completes."