Dana Fuel terminates deal to promote Egyptian belongings for as much as MAD 867 million
Dubai: Dana Fuel mentioned it halted the sale of its Egyptian belongings after failing to strike a take care of IPR Vitality Group (IPR).
“Various circumstances precedent to the transaction couldn’t be met to the satisfaction of each events earlier than the lengthy date of termination of the Sale and Buy Settlement (SPA), which was Wednesday April 14, 2021” Dana Fuel mentioned in an announcement.
The Board due to this fact determined to retain and function the belongings in Egypt alongside the very promising exploration space off Block 6, he added.
Final yr, Dana reached a binding settlement with IPR for the sale of its onshore oil and fuel belongings in Egypt for as much as $ 236 million (MAD 866.88 million), together with contingency funds.
With the cancellation of the sale, Dana mentioned there could be “optimistic penalties” on the corporate’s profitability and steadiness sheet and an enchancment in its money move within the years to come back. The corporate added that that is based mostly on the belief of an enhancing world economic system and vitality markets.
“Dana Fuel has labored diligently to finish this transaction – nonetheless, assembly the circumstances precedent within the SPA has confirmed to be problematic between the events,” mentioned Patrick Allman-Ward, CEO of Dana Fuel.
“After the due date for the satisfaction of those circumstances has expired, and after cautious consideration, the corporate has determined to train the appropriate to terminate the SPA in accordance with its phrases,” he added.