Petroleum Africa
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Monday, May 23, 2016
Circle Oil provided an update on its strategic review process. The company said that to date it has received a number of indicative proposals, which are in the process of being evaluated, and is working to conclude the strategic review process as expediently as possible.
After taking into account its $77.5 million outstanding debt position (which comprises the $20.0 million convertible loan held by KGL Investment Company and the $57.5 million reserve base lending facility with International Finance Corporation which is fully drawn) and based on the indicative proposals received to date, it is likely that there will be little or no value attributed to Circle Oil equity holders.
The management continue to consider all options to maximize value for shareholders and stakeholders. As previously announced, the scope of the options being considered under the strategic review include, but are not limited to, a debt restructuring, a sale of one or more of Circle’s existing assets, a corporate transaction such as a merger with a third party, the sale of the entire issued, and to be issued, share capital of the company and the raising of capital in the form of a subscription for new ordinary shares in the company by one or more third parties.
A further update will be given in due course.
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