Americas Petrogas Inc. announces that, further to its previously announced strategic review process, the Company has entered into a definitive agreement of purchase and sale with Tecpetrol International S.A. and Tecpetrol Internacional S.L. (Unipersonal) pursuant to which Tecpetrol will acquire all of the issued and outstanding common shares of Americas Petrogas Argentina S.A. (APASA), a wholly-owned subsidiary of the Company, as well as assuming certain intercompany indebtedness owing by APASA to the Company and its other subsidiaries. APASA will transfer certain assets to the Company's other wholly-owned Argentine subsidiary, Energicon S.A. (Energicon), in connection with the APASA sale. In consideration for the Transaction, the Purchasers will pay to the Company an aggregate cash purchase price of US$63 million, subject to adjustment in accordance with the terms of the Sale Agreement.
The cash purchase price of US$63 million (equal to approximately CDN$77.6 million based on the closing exchange rate on June 16, 2015 as reported by the Bank of Canada) is in addition to the Retained Participating Interests (as defined below). The cash purchase price alone, even without considering the valuation of the Retained Participating Interests and GrowMax Agri Corp, equals CDN$0.335 on a per common share basis, which represents a 46% premium to the closing price and a 75% premium to the 30 trading day volume weighted average trading price of the Company's common shares on the TSX Venture Exchange on June 16, 2015.
Mr. Barclay Hambrook, President and Chief Executive Officer of the Company, commented: "We are pleased with the agreement that has been reached with Tecpetrol, a strong partner dedicated to the exploration, production, pipeline transportation and marketing of hydrocarbons in Argentina. The cash will allow the Company to expand its activities on its retained conventional and unconventional properties. As well, Americas Petrogas and Tecpetrol intend to jointly consider investment opportunities in Latin America in the future."
