Nostrum Oil & Gas completes Kazakhstan operations sale
Nostrum Oil & Gas PLC on Friday announced the completed sale of its Kazakhstan operations and said it has funded the full redemption of its senior secured notes.
The oil and gas exploration and production company said the sale consideration totalled USD304.6 million at completion, as it stated when it announced the deal on August 17.
Nostrum said it has sold its participating interests in the charter capital of Zhaikmunai LLP and POSITIV Invest LLP, alongside its rights under certain related loan agreements, to Altaris Holding Ltd. Altaris is an acquisition vehicle incorporated in the Astana International Financial Centre, and is 51% owned by Alturion Holding Ltd and 49% by Fincraft Energy Holding Ltd.
The disposal marks "a major step in [our] deleveraging and value-realisation process," Nostrum noted.
It said USD10.0 million of the consideration has been placed in escrow for at least six months in connection with its warranties and potential claims under or in connection with the sale & purchase agreement.
Nostrum also said that upon completion, it fully funded the redemption of its senior secured notes due this year, including outstanding principal, accrued and unpaid interest, and default interest.
After paying the final accrued interest on senior unsecured notes also due this year, the firm also said Nostrum Oil & Gas BV will purchase USD417.5 million in senior unsecured notes, leaving USD100.0 million in principal outstanding. The remaining notes will mature on December 31, 2028.
Nostrum said that following completion, it will proceed with its managed wind-down.
"Completion of this transaction marks the culmination of nearly three decades of Nostrum's investment and operations in Kazakhstan, and the beginning of a new chapter for Zhaikmunai and POSITIV Invest under Kazakhstan-based ownership," said Chief Executive Officer Viktor Gladun. "Since 1997, Nostrum has invested more than USD2.5 billion in the country, developing a substantial oil and gas production and processing business and, importantly, a highly experienced local workforce.
"For Nostrum, the transaction represents the successful conclusion of a lengthy strategic sale process, enabling the group to redeem its senior secured notes in full and substantially reduce its remaining indebtedness."
Nostrum shares had earlier fallen 24%, but were up 18% at 1.00 pence on Friday afternoon in London.
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