24 December 2007 - 12:42
  • News Code: 122564

Regal Petroleum has completed the sale of its entire shareholding in Eurotech Services SA to Aegean Energy SA, a Greek-owned company.

Eurotech Services SA is a holding company incorporated in Greece through which the Company previously owned its 95% economic interest in Kavala Oil SA. Under the terms of sale, the Company sold the entire issued share capital of Eurotech Services SA to Aegean Energy SA for a consideration of US$1.5 million in cash. The Company fully impaired its investment in Eurotech Services SA in its accounts for the year ended 31 December 2006 and no profits were attributable to its investment in Eurotech Services SA in such period. The Company intends to use the sale proceeds for working capital purposes. In addition, the Company has assigned to an associated company of Aegean Energy SA its equitable interests in certain indebtedness owing to the Company for a nominal consideration as well as its interests in certain plant and equipment for deferred cash consideration to be determined by independent valuation and by reference to any net resale consideration received, although the Company is unable to advise of the amount of such deferred cash consideration at this time as there are a number of contingent factors relating thereto save to advise that it is not believed likely to be significant.


News Code 122564

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