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LONDON (Alliance News) - San Leon Energy PLC said the vehicle being used to complete the acquisition of Mart Resources Inc has received all the required funds, and said the vehicle will transfer the funds to complete the acquisition later Tuesday.
San Leon was supposed to transfer the consideration for Mart Resources into an escrow account by February 17, but has had to extend that deadline numerous times, but said Tuesday that it should be able to deposit the funds later Tuesday.
San Leon said Tuesday that all the required funds, totalling USD73.0 million, to satisfy the acquisition have been received by lawyers acting for the acquisition vehicle. The consideration has been provided by debt investors, who will hold security over San Leon's shares in the acquisition vehicle.
No further approvals are needed for the acquisition to be completed.
However, San Leon needs shareholder approval and other regulatory approvals to benefit from its stake in the acquisition vehicle. If approved, the company would secure a 4.05% indirect economic interest in the OML18 block in Nigeria, a minimum 65% enhanced cash sweep of the acquisition vehicle's production proceeds from that licence to cover the debt repayments incurred to finance the acquisition and the right to provide services to the operator of the licence, it said.
As the acquisition is part of a larger deal, the next steps would allow San Leon to increase that indirect economic interest in the licence to 9.72% by arranging further funds of up to USD100.0 million to the acquisition vehicle. San Leon said further details will be released shortly.
San Leon shares remain suspended.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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