JKX has agreed terms for the sale of the entire share capital of its wholly owned Hungarian subsidiary, Folyopart Energia KFT (Riverside Energy KFT ("Riverside")), to Starhol Holding Limited for a cash consideration of US$2.9 million. Completion is contingent on receipt of Ukrainian Anti-Monopoly consent and is expected in 4 - 8 weeks. Riverside holds a number of Hungarian mining plots and a production facility. It is not currently producing hydrocarbons.
Riverside had gross assets of HUF 975m ($3.3m) as at 31 December 2019 and reported profits of HUF 28m ($0.1m) for the full year of 2019, in accordance with Hungarian GAAP. The transaction will simplify group operations, reduce costs and allow a more focussed strategy. The sales proceeds will be used to fund ongoing operations in Ukraine. There are no further matters that need to be disclosed in relation to this transaction pursuant to LR 10.4.1R.
Mr. Victor Gladun, Group CEO, said "I am pleased that we are demonstrably executing on our previously announced strategy and taking steps to focus our portfolio on our most prospective opportunities."
