Business
Acquisition
Acquisition.
About this update from Clontarf Energy Plc
[{"type":"text","content":"\n RNS Number : 9916N Persian Gold PLC 22 June 2010 \n \n\nPERSIAN GOLD PLC\nPROPOSED ACQUISITION OF HYDROCARBON EXPLORATION PLC\n \nThe board of Persian Gold plc (\"Persian\") is pleased to announce that it has entered into an implementation agreement whereby it has agreed to acquire all of the outstanding shares of Hydrocarbon Exploration plc (\"HyEx\") (the \"Acquisition\"). The Acquisition will be achieved by way of a scheme of arrangement (the \"Scheme\"). Persian has requested that dealings in its shares be immediately suspended from AIM pending publication of an admission document.\nDetails of the Acquisition\nHyEx is a UK plc which was formed when Petrominerales Ltd (\"Petrominerales\"), a Latin American based oil exploration and production company listed on the Toronto Stock Exchange, acquired AIM listed Pan Andean Resources plc, and into which Pan Andean Resources plc transferred its non-Colombian and non-Peruvian assets. On completion of the transaction, Persian will own 100 per cent. of the equity of HyEx, whose assets will be the exploration interests in Bolivia and Ghana and royalty income and licences over producing assets in the US. \nPersian has conditionally offered to buy all of the outstanding shares of HyEx from the existing shareholders of HyEx on the basis of 2,500 new shares of Persian for every one HyEx share held, subject to certain conditions, including Persian shareholder approval. The conditions are set out in the summary of principal terms below. \nThere are currently 25,537 HyEx shares in issue and 75,172,835 Persian shares in issue which would result in HyEx shareholders holding approximately 45.75 per cent. of Persian as enlarged by the Acquisition. At the current Persian share price of 6.75p, this values HyEx at approximately £4.3 million. It is also anticipated that Persian will undertake a placing of new shares to raise sufficient working capital for the enlarged group. As part of the arrangements described, the enlarged group will change its name to Clontarf Energy plc.\nThe Scheme is subject to regulatory and legal approvals, including approval by the High Court of England and Wales and approval of HyEx and Persian shareholders. The final terms of the Offer will be set out in a circular expected to be posted to shareholde...