LONDON (Alliance News) - Range Resources Ltd Monday said it was looking again at its proposed merger with International Petroleum Ltd after it announced a deal to sell its Kazakhstan and Russia for USD60 million, and could decide to do an alternative deal or proceed with the merger but on renegotiated terms.
Texas-based Range proposed a merger with International Petroleum back in April, attracted by the potential of expanding its commercial prospects in the Russian and transcontinental regions. It has also lent the company USD8 million in the form of a secured loan.
In a statement, Range said it had known about the proposed sale of International Petroleum's Russian assets, but had only just learned the final terms of the deal and about the sale of the Kazakhstan assets.
"As a result of clarity on the sale of these assets, the likely proceeds from this sale and the
associated shift in focus of International Petroleum to its African assets, Range will now identify and consider a range of corporate alternatives to the original merger proposal, which may or may not include a merger of the two companies - albeit on terms to be renegotiated," Range Resources Executive Director Peter Landau said in a statement.
Range Resources closed down 3.4% at 1.85 pence.
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