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Rex's Lime Petroleum completes acquisition of 10% stake in Yme Field in Norway

Felicia Tan
Felicia Tan12/23/2022 11:43 PM GMT+08  • 2 min read
Rex's Lime Petroleum completes acquisition of 10% stake in Yme Field in Norway
The 10% stake was sold at a post-tax consideration of US$68.1 million ($91.9 million). Photo: Rex International
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Rex International Holdings’ 91.65%-owned subsidiary, Lime Petroleum, has completed the acquisition of a 10% stake in Repsol-operated Yme Field on the Norwegian North Sea on Dec 23.

The stake was sold at a post-tax consideration of US$68.1 million ($91.9 million).

The completion was concluded with an initial payment of US$55 million. The balance of the payment will be paid within 30 days of the completion of the acquisition.

On Aug 10, Rex announced that Lime Petroleum entered into a conditional sale and purchase agreement (SPA) with KUFPEC Norway AS (KUFPEC), to acquire KUFPEC’s 10% interest in the Yme Field.

The acquisition, as mentioned in Rex’s Aug 10 release, will be financed through internal resources, equity financing and debt financing, including the three-year senior secured bond issue in the Nordic bond market for Lime Petroleum.

Funds raised from the bond issue would also be used to refinance Lime Petroleum’s existing NOK 500 million (approximately US$51 million or $68.7 million) senior secured bonds with maturity in January 2024 (ISIN NO0011037343), as well as general working capital purposes.

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As part of the settlement, ABG Sundal Collier ASA has been engaged to raise NOK250 million (approximately US$25.5 million or $34.3 million) from the tap mechanism in the bond (ISIN NO0012559246), or the tap, set up in June.

ABG Sundal Collier ASA is a Nordic independent investment bank and the manager of the bond issue.

The tap will be raised during the month of January 2023, with ABG Sundal Collier ASA as underwriter.

Shares in Rex International closed 0.5 cent lower or 2.22% down at 22 cents on Dec 23.

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