Rex International Holding Limited, and together with its subsidiaries, the “Group”), a new-generation technology driven oil company, has divested its indirect holdings in Steeldrum Oil Company Inc. (“Steeldrum”) in Trinidad & Tobago, an available-for-sale asset of the Group. This is in line with the Group’s strategy to focus its efforts on bringing its oil discovery assets in Oman and Norway to production in 2019 and 2020 respectively.
On 16 July 2018, the Company announced that its indirect wholly-owned subsidiary Rex Caribbean Holding Limited (BVI) (“RCH”) and the other shareholders in Steeldrum (collectively, the “Sellers”), had signed a Sale and Purchase Agreement (“SPA”) to sell their respective stakes in Steeldrum to Columbus Energy (St Lucia) Ltd (“Columbus SL”) (the “Divestment”). RCH held a 25.72% stake in Steeldrum, which had been reclassified as an available-for-sale investment of the Group since December 2016. The Company announced the completion of the transaction in a separate announcement dated 8 October 2018.
Mr Dan Brostrom, Executive Chairman of Rex International Holding, said, “The proceedsreceived thus far from the Steeldrum transaction is an aggregate 28,077,549 Columbus Shares with a value of approximately US$1.54 million1. This is higher than our book value of RCH’s holding in Steeldrum of US$1.11 million as at 30 June 2018. There may be further upside for additional deferred consideration if certain events relating to the Cory Moruga and Innis-Trinity fields as contemplated under the SPA materialise. The divestment is in line with our strategy to focus on our core assets and strengthens our financial position as we continue to focus and invest to bring our assets in Norway and Oman into production.”