Business
Claremont agrees to sell 50m
Claremont agrees to sell 50m.
About this update from Nostrum Oil & Gas Plc
[{"type":"text","content":"\n RNS Number : 0979C Zhaikmunai LP 06 November 2009 \n \n \n NOT FOR PUBLICATION, DISTRIBUTION OR RELEASE, DIRECTLY OR INDIRECTLY, IN OR into AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES\n\n\nZHAIKMUNAI L.P.\n\nClaremont agrees to sell 50 million GDRs at US$4.00 to KazStroyService\n\nLondon, 6 November 2009: Zhaikmunai L.P. (\"Zhaikmunai\"), the oil and gas exploration, development and production business based in northwestern Kazakhstan, has been informed by Claremont Holdings Limited (\"Claremont\") that is has agreed to sell 50 million GDRs, representing approximately 27 per cent of the company's issued common units, to KazStroyService Global BV (\"KSS\") at US$4.00 per GDR. \n\nKSS is an affiliate of JSC OGCC KazStroyService, which is currently constructing Zhaikmunai's gas treatment facility in the Chinarevoskoye field in Kazakhstan.\n\nClaremont, which is controlled by Frank Monstrey, the chairman of Zhaikmunai, is the holder of 125 million Zhaikmunai GDRs representing approximately 67.6 per cent of Zhaikmunai's issued common units. The one-year lock-up entered into by Claremont on 10 September 2009 following Zhaikmunai's $300m capital raising earlier this year has been waived in respect of the 50 million GDRs being sold to KSS under the terms of the Underwriting Agreement entered into by Zhaikmunai in July 2009. KSS will be subject to a lock-up in respect of the 50 million GDRs until 10 September 2010. \n\nThe transfer is subject to receipt of necessary approvals under the anti-monopoly laws in the Republic of Kazakhstan and is expected to complete before the end of March 2010.\n\nCommenting on the transaction, Mr Monstrey, chairman of Zhaikmunai, said:\n\"We look forward to welcoming KazStroyService as a shareholder in Zhaikmunai. KSS is an important strategic investor for the business and its purchase of a significant minority stake reflects its confidence in the prospects for Zhaikmunai going forward. Together with the capital raising earlier this year, the support from KSS will help underpin the business as it moves forward into the next stage of its development. Completion of the gas treatment unit by KazStroyService will help lift Zhaikmunai to a new level of production and we are very pleased that we will be working with KSS both as a...