(Alliance News) - Hardy Oil & Gas PLC said on Monday it has agreed to sell wholly-owned subsidiary Hardy Exploration & Production India Inc for an increased consideration of USD8.8 million.
Last week, the company said it had entered into a conditional share purchase agreement to Invenire Energy Private Ltd for USD3.0 million. At the beginning of July, the firm had agreed to sell the unit for USD1.5 million to Hindustan Oil Exploration Co Ltd.
Following "revised offers and negotiations", it has now agreed to sell HEPI to Invenire for an increased cash consideration of USD8.8 million. Hardy noted that this price is a "very significant uplift" on the previous price agreed.
Chair Alasdair Locke said: "The board unanimously considers that the revised Invenire offer is in the best interests of all shareholders. The price secured by the board is at a substantially higher price than that initially offered by Invenire and the board will now move to completing this disposal as quickly as possible. Further updates will be made when appropriate."
If approved by shareholders, the transaction will result in Hardy becoming a cash shell.
Shares in Hardy closed up 42% at 4.26 pence in London on Monday.