Business
Completion of disposal of Gib
Completion of disposal of Gib.
About this update from Hunting Plc
[{"type":"text","content":"\n RNS Number : 0975K Hunting PLC 15 December 2008 \n \n\n\n\n\nFor immediate release\n\n\n15 December 2008\n\n\n\n\n\n\n\nHunting PLC\n\n('Hunting' or 'the Company')\n\nCompletion of disposal of Gibson Energy\n\nHunting PLC (LSE:HTG), the international energy services company, is pleased to announce the completion ('Completion') on 12 December 2008 of the disposal of Gibson Energy Holdings Inc. ('Gibson') to Gibson Acquisition ULC (formerly named 1413281 Alberta ULC), ('the Purchaser') a company ultimately owned by the Riverstone/Carlyle Global Energy and Power Fund, an energy focused private equity fund managed by Riverstone Holdings LLC.\n\nThe total consideration for Gibson is CAN$1,258 million (approximately £617 million) of which CAN$1,158 million (approximately £568 million) was paid in cash on Completion. Under the original terms of the transaction as announced to shareholders on 6 August 2008, the total consideration was payable in cash on Completion. To assist the Purchaser with its financing, Hunting has agreed to defer payment of CAN$100 million (approximately £49 million) of the consideration through the receipt of a warrant (the 'Warrant') entitling Hunting to CAN$100 million Preferred Equity Shares ('Preferred Equity') in the parent company of the Purchaser on exercise of the Warrant. The Preferred Equity will carry an annual dividend which is cumulative and compounding at a rate of 12%. After two years the Preferred Equity automatically converts into a separate class of common shares. The value of the common shares will equal CAN$100 million plus the amount of any accrued but unpaid dividends on the Preferred Equity at the date of conversion. The Purchaser (or an affiliate of the Purchaser) may purchase the Warrant from Hunting for cash plus a sum equal to any cumulative dividends on the Preferred Equity from the date that the Warrant has been issued.\n\nThe total consideration for Gibson is subject to a deduction for estimated debt within Gibson of CAN$215 million (approximately £105 million) as at Completion and includes estimated net working capital in Gibson of CAN$158 million (approximately £77 million) at Completion. These e...