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Heads of Terms: Disposal of Italian Interests
Heads of Terms: Disposal of Italian Interests.
About this update from Sound Energy Plc
[{"type":"text","content":"\n \nRNS Number : 7497S Sound Energy PLC 04 October 2017 \n\n5 October 2017\nSound Energy plc\n(\"Sound Energy\" or the \"Company\")\n \nHeads of Terms\n \nCreation of Coro Energy plc through the combination of Sound Energy Italy with Po Valley Energy Ltd and Saffron Energy plc\n \nSound Energy, the African and Italian upstream gas company, notes the announcement made this morning by Saffron Energy plc (\"Saffron\") and is pleased to announce that it has entered into non-binding conditional heads of terms (the \"Heads of Terms\") with Saffron and Po Valley Energy Limited (\"Po Valley\") under which it is proposed that Sound Energy disposes of its portfolio of Italian interests and permits (the \"Italian Interests\") through the sale of Sound Energy's wholly owned subsidiaries Appenine Energy SpA (\"APN\") and its holding company Sound Energy Holdings Italy Limited (\"SEHIL\") to AIM quoted Saffron (the \"Disposal\"). It is intended that the Saffron shares received as consideration for the Disposal will be distributed directly to Sound Energy shareholders. \n \nCommenting on today's announcement, Sound Energy's Chief Executive Officer James Parsons said: \n \n\"This transaction will provide an elegant exit from our Italian activities thereby delivering strategic focus for our province opening activities in Morocco and enabling Sound Energy shareholders the opportunity to continue their participation in an early stage consolidated but growth focused Italian E&P company.\"\n \nThe Disposal, together with the grant by ASX listed Po Valley to Saffron of a call option to acquire all of the issued share capital of Po Valley's wholly owned subsidiary Po Valley Operations Limited (the \"PVO Option\"), will result in the combination of the Italian oil and gas portfolios of Sound Energy, Saffron and Po Valley (the \"Proposed Transaction\"). Po Valley is currently interested in 53.8 per cent. of Saffron's issued ordinary share capital. \n \nThe enlarged company would be re-named Coro Energy plc (\"Coro\").\n \nJames Parsons, Sound Energy's Chief Executive Officer, would be appointed as Non-Executive Chairman of Coro as part of the Proposed Transaction and Sara Edmonson, Po Valley's Chief Executive Officer, would assume the role of Chief Executive Officer of Coro. Key local executive st...