(Alliance News) - Commodity trader Trafigura has taken a "significant" stake in President Energy PLC, President said on Monday.
Singapore-based Trafigura traded nearly 400 million tonnes of commodities in 2019, achieved revenue of just over USD170 billion. President owns assets in Argentina's Noroeste and Neuquen basins, and also has interests in Paraguay and the US.
Trafigura has subscribed for 76.0 million new President shares at 4.04 pence each, for USD4 million, and has also taken an option for a further USD6 million worth of shares at 4.65p each. The initial investment gives it a 6.1% in President.
Leeds-based President's shares were 3.6% higher on Monday morning in London at 4.20p.
President also said a company owned by Chair & Chief Executive Peter Levine, IYA Global Ltd, has converted a USD4.8 million loan into new shares. Initially, USD2.0 million of this is being converted at 4.04p, with the rest being converted at 4.65p if IYA decides to. The initial conversion gives Levine a 29.99% stake.
The affect of both transactions, President said, will be to reduce net debt initially by GBP6.0 million, potentially reducing it by USD14.8 million.
Levine commented: "We welcome Trafigura as a significant stakeholder in President. Trafigura, already an important off-taker of the group, is an international trading and logistics company with extensive interests in the energy sector.
"With reduced debt and concomitant lower servicing requirements combined with a substantial and supportive international industry partner as a significant shareholder alongside myself and other shareholders, we are well placed to deliver on our strategy to generate growth not only organically but also through being able to take advantage of appropriate opportunities in various jurisdictions as they arise in the future."
By George Collard; georgecollard@alliancenews.com
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