(Rockhopper, 28.Aug.2020) — Rockhopper Exploration plc announced the disposal of its entire shareholding in United Oil & Gas plc.
The transaction involves the sale of 114,503,817 ordinary shares in United at a disposal price of 2.66 pence per share for total gross proceeds of approximately £3mn (approximately $4mn). The disposal price represents a 6.7% discount to yesterday’s closing price of United’s shares.
The sale proceeds will be used to strengthen the company’s balance sheet.
Sam Moody, Chief Executive Officer, commented:
“The monetisation of our entire shareholding in United after a short holding period of under six months strengthens our balance sheet at a particularly challenging time for the sector. It also crystallises a strong cash return of $15.5mn from an original investment of $11.9mn four years ago, which has also generated $4mn of free cash flow during our period of ownership.”
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