SDX Energy signs deal to divest all of its Egyptian assets

LONDON, UK: SDX Energy has entered into non-binding Heads of Terms with a large multinational operator to divest of all of its Egyptian assets. The company expects to close the transaction by year-end.

The signed Heads of Terms represents an important milestone, towards crystallising value for shareholders and optimising the Company’s asset portfolio.

The disposal will position SDX Energy for upcoming diversification into Morocco’s energy transition sector. Moving towards the energy transition narrative also gives access to a wider pool of capital, setting SDX on a new path of growth with the ultimate aim of delivering sustainable returns for shareholders.

It is envisaged that the Disposal, if completed, would constitute a fundamental change of business pursuant to AIM Rule 15 – the consideration, as currently calculated in the Heads of Terms, will significantly exceed the market cap Consideration Test threshold.

The disposal would therefore also require the consent of SDX shareholders being given in a general meeting. Upon signing a sale and purchase agreement, the Company will issue a further announcement and publish a circular containing details of the Disposal and convene a general meeting.

Completion of the disposal will be subject to, among other conditions, the negotiation of final transaction documentation and obtaining Egyptian government approvals for the sale. The Heads of Terms are non-binding and, therefore there can be no certainty that the Disposal will complete.

Daniel Gould, Managing Director, commented: “The planned sale of SDX’s Egyptian assets will be a significant milestone on the Company’s transition roadmap that we will soon be presenting to our shareholders. SDX, re-energised with new management, will focus on monetising exciting opportunities around its Moroccan assets and related energy transition sector-plays in order to reward and deliver capital growth to our shareholders in the near term.”

Leave a Reply

Your email address will not be published. Required fields are marked *