Nexus Updates on Plans to Divest its Crux, Longtom Assets in Australia
Australia's oil and gas production company Nexus Energy Limited provided Thursday an update on a previous announcement in which the firm revealed its plan to unlock value and achieve optimum outcome for shareholders.
Overview of Strategic Review Process to Date
Following the consolidation of interests in the Crux asset in October 2012, a process to divest a tranche of Nexus’ interest in the Crux asset was initiated with the objective of providing funding to support the next stage of Nexus’ growth and development. This process was extended to include a divestment of Longtom following the amendment of the Longtom Gas Sales Agreement in May 2013.
Through mandated investment banks, the Company has undertaken a comprehensive asset divestment process on both Crux and Longtom with the objective of delivering value to the Company’s shareholders.
In late 2013, given interest received under the asset divestment processes, Nexus informed selected parties that it would be willing to consider appropriate proposals with respect to a corporate acquisition of the Company.
Strategic Review Update
The Company has been in receipt of non-binding proposals in respect of Crux. These proposals were priced significantly below the regional transaction benchmark and accordingly the Board concluded that they were not capable of acceptance. As a result, discussions with those parties were discontinued. Discussions are continuing with another interested party. As yet no binding proposal has been received and there is no assurance that any binding proposal will be received.
In respect of Longtom, the Company has been in receipt of non-binding proposals. The Company continues to engage with these third parties. As yet no binding proposal has been received and there is no assurance that any binding proposal will be received.
In respect of a potential whole of Company transaction, the Company received a highly conditional nonbinding proposal and entered into good faith discussions with the third party. Those discussions have now terminated. There are no third party discussions currently ongoing in relation to a whole of company transaction.
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