Senergy Holding announces that its Board of Directors has convened its meeting on Monday the 5th of September, 2016 at 1:30 PM and reviewed the preliminary proposal received for the purchase of the company’s 60% stake in the National Drilling Company – Egypt.
After reviewing the proposal, and taking into consideration the circumstances enveloping the National Drilling Company – Egypt and the changes regarding the drop in the number of operating drillers globally due to decreasing demand on drilling assignments which have led to an increase in driller supply on the global market, which in turn resulted in a decrease in contractual pricing related to drilling assignments; and considering the continued loss of the company, and after weighing all available options between the continuous bearing of loss to the subsidiary or its sale (which would release liquid cash potentially investable in other activities in the best interest of the shareholders), the aforementioned proposal has been approved by the Board. Details of this decision are listed below:
- Value of Exit: 138 Million Egyptian Pound equivalent to 3,365,850 Kuwaiti Dinars.
- Effect on Statement of Income: Loss of 2,918,470 Kuwaiti Dinars
The finalization of the transaction is dependent on the agreement of final sale contracts and obtaining the approval of all regulatory authorities and required governmental entities of Egypt and the finalising of all ownership transfer procedures to the benefit of the purchasing party.
Updates shall be made public in due time.
Disclosure details are as follows:
Auxiliary Disclosure Form
|Senergy Holding Company
||Name of Listed Company
|Board of Directors Meeting discussing Investment Exit preliminary proposal
||Date of Previous Disclosure
|Board of Directors approval of a preliminary offer to buy a 60% stake in the National Drilling Company for a total sale value of 138 Million Egyptian Pounds equivalent to 3,365,850 Kuwaiti Dinars
||Update to the Disclosure
|Expected loss of about 2,918,470 Kuwaiti Dinars, taking into consideration that finalising the investment exit process is contingent on the signing of the final sales agreement and obtaining the necessary approvals of all oversight agencies and other governmental entities party to the agreement in Egypt along with the finalisation of all ownership transfer procedures to the benefit of the buyer.
||Financial Impact of Ongoing Updates (if any)