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Sterling Resources Ltd. Announces Agreement to Sell UK Operating Subsidiary to Oranje-Nassau Energie B.V.
Sterling Resources Ltd. Announces Agreement to Sell UK Operating Subsidiary to Oranje-Nass...
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[{"type":"text","content":"\n\n\n\nSterling Resources Ltd. Announces Agreement to Sell UK Operating Subsidiary to Oranje-Nassau Energie B.V.\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nCALGARY, March 3, 2017\n\n\n\nCALGARY, March 3, 2017 /CNW/ - Sterling Resources Ltd. (TSX-V:SLG) (\"Sterling\" or the \"Company\") announces that it, together with its wholly-owned subsidiary SRUK Holdings Ltd. (\"SRUK Holdings\"), has entered into a definitive agreement (the \"Share Purchase Agreement\") with Oranje-Nassau Energie B.V. (\"ONE\"), the largest privately owned Dutch exploration and production company, pursuant to which ONE has agreed to acquire (the \"Transaction\") from SRUK Holdings the entire issued share capital of Sterling Resources (UK) Ltd. (\"SRUK\") for an amount equal to US$163 million, less:  (a) amounts necessary to redeem the outstanding US$40 million principal amount of bonds issued by SRUK; (b) amounts necessary to cancel the super senior revolving credit facility entered into by SRUK, SRUK Holdings and the Company with a syndicate of lenders; and (c) certain completion adjustments based on actual change of control and interim period costs relative to targeted amounts.  Following all such adjustments, and other associated expenses, the Company anticipates net proceeds from the sale of SRUK of approximately US$113 million, assuming a completion date of the Transaction of May  15, 2017.  \n\nAs previously announced, following the completion of Sterling's recapitalization on May 30, 2016, the board of directors of Sterling continued its pursuit of potential M&A opportunities, though from a strengthened financial position.  Sterling considered a number of alternatives from a variety of potential counterparties to maximize shareholder value over the nearly 9 months that followed.  Ultimately, this process culminated with the board of directors of Sterling recommending the Transaction with ONE, which was determined to offer Sterling's shareholders the greatest value.  \n\n\"Following a careful review of the Transaction by...