Citadel revises energy firm stake sale terms

Cairo , March 21, 2012

Citadel Capital said its opportunity-specific fund has signed an amended share purchase deal with Calgary-based Sea Dragon Energy for sale of its 100 per cent stake in the upstream energy firm, National Petroleum Company Egypt.

Citadel Capital is a leading private equity firm in the Middle East and Africa with $9 billion in investments under control.

According to Citadel, Sea Dragon has reached a non-binding understanding with Golden Crescent regarding revised terms for the transaction.

The equity giant, which has management control of Golden Crescent, said it was aware that volatile local and international conditions could affect the conclusion of the transaction and hence had revised the agreement terms.

Unveiling the revised sale terms, Citadel said, 'As per this, the Calgary-based exploration and development firm would purchase all of the issued and outstanding shares of NPC Egypt for consideration including $87.5 million of common shares of Sea Dragon, to be satisfied through the issuance of 437.5 million Sea Dragon common shares, and $60 million of redeemable, convertible, non-voting preferred shares.'

The value of the closing consideration payable by Sea Dragon to Golden Crescent under the amended share purchase agreement remains unchanged at $147.5 million, it added.

As per the deal, Sea Dragon has until May 8 to complete the transaction (subject to a 10-day extension), while Golden Crescent has a non-exclusivity period in which to solicit and entertain alternative proposals lasting until May 1, said Citadel in a statement.

This announcement, however, does not constitute a promise to conclude the transaction, said Citadel pointing out that Sea Dragon had to get approvals and other clearances from its shareholders, lenders, and regulatory authorities.-TradeArabia News Service

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