Petrobaltic Snaps up LOTOS Exploration and Production Shares
The Management Board of Grupa LOTOS S.A. reported that on June 12th 2008, Grupa LOTOS S.A. entered into an agreement with Petrobaltic S.A. (in which Grupa LOTOS S.A. holds a 69% stake) to sell 8 million shares in LOTOS Exploration and Production Norge A.S., representing 20% of the share capital in this company (to date controlled in 80% by Petrobaltic S.A., and in 20% by the Issuer).
LOTOS E&P Norge A.S.'s core business consists in exploration for and production of crude oil on the Norwegian continental shelf.
Petrobaltic S.A., as the leading company of the LOTOS Group in the field of exploration and production, became an investor in LOTOS E&P Norge A.S. and, once the transaction is finalized, will hold in aggregate 40 million shares, representing 100% of the share capital of LOTOS E&P Norge A.S.
The acquisition of the shares by Petrobaltic S.A., and consequently the take-over of full control over LOTOS E&P Norge A.S., is another step in pursuit of the assumed strategy and an element of the consistently implemented program aimed at streamlining the structure of the LOTOS Group.
The shares transferred under the agreement, with the total par value of NOK 8,000 thousand (or PLN 3,376 thousand, translated at the PLN/NOK mid-exchange rate quoted by the National Bank of Poland for June 12th 2008), carrying the right to 8 million votes, are equal and indivisible shares and represent 20% of the share capital of LOTOS E&P Norge A.S. Their acquisition by Petrobaltic S.A. will be treated as a long-term investment.
Petrobaltic S.A. acquired the shares in LOTOS E&P Norge A.S. at a market price equal to their par value, and financed the acquisition with its internally-generated funds.
The agreement will take effect provided that the General Shareholders Meeting of Petrobaltic S.A. approves the purchase of the shares. The decision taken by the General Shareholders Meeting of Petrobaltic S.A. will be announced by Grupa LOTOS S.A. in a separate current report.
The value of LOTOS E&P Norge A.S.'s assets sold under the agreement, as disclosed in the accounting books of Grupa LOTOS S.A., is PLN 3,886,400.
The assets to which the transaction relates are considered significant based on the fact that the transferred shares represent 20% of the share capital of LOTOS E&P Norge A.S.
Manages 2 Offshore Rigs
- Australia's Subsea Engineering Associates Bags Baltic Gas Project Contract (Jan 26)
- AGR Wins Excavation Gig for Petrobaltic Rig (Feb 28)
- Petrobaltic Snaps up LOTOS Exploration and Production Shares (Jun 12)