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AGREEMENT REACHED FOR RELEASE OF SUMS FROM ESCROW
AGREEMENT REACHED FOR RELEASE OF SUMS FROM ESCROW.
About this update from Seplat Energy Plc
[{"type":"text","content":"\n \nRNS Number : 5590S SEPLAT Petroleum Development Co PLC 09 July 2015 \n \n\nNOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION\nUPDATE ON DEPOSIT FOR INVESTMENT - AGREEMENT REACHED FOR RELEASE OF SUMS FROM ESCROW\nLagos and London, 9 July 2015: Seplat Petroleum Development Company Plc (\"Seplat\"), a leading Nigerian indigenous oil and gas company listed on both the Nigeria Stock Exchange and London Stock Exchange, announces that it has reached agreement through its wholly owned subsidiary Newton Energy Limited (\"Newton\") hereafter the (\"Group\") for the release of sums from escrow that had previously been allocated as a refundable deposit against a potential investment.\nPursuant to an agreement reached by the Group, the sum of US$408 million which was held in an escrow account has been released. The escrow account was originally set up in connection with a potential acquisition of an asset by a consortium, which Newton has an option to invest into. There have been material delays with the underlying acquisition, prompting Seplat to reach agreement with the consortium for release of the Escrow amount. The remaining US$45 million of the US$453 million which was allocated as a refundable deposit remains as a deposit with the potential vendors of the asset whilst negotiations between the consortium and vendors continue.\nCertain recent events have led to the restart of negotiations by the consortium to secure the asset, and Seplat continues to work with them. As this process continues, and following the release of the Escrow amount, a sum of US$29 million has been placed into a new escrow account in London, pending agreement of final terms of the acquisition transaction. The remaining balance of US$368 million has been returned to the Group.\nIn the event that terms can be agreed for the potential acquisition of the asset by the consortium and Newton agrees to proceed with the investment, the funds in escrow will be released back to Newton. Should Newton at its discretion decide not to proceed with the potential investment, an additional payment of US$20 million will be made to other consortium members with the remaining funds in escrow rele...