Hunting sells Canadian subsidiary
Article Date: Dec 16 2008LSE-listed energy services group Hunting has completed the disposal of its Canadian oil and gas division after agreeing to a deferred payment of CAN$100 million (£49 million).
The sale of Gibson Energy to private equity fund Riverstone Carlyle, which was delayed several weeks while it received regulatory clearance, is worth a total of CAN$1,258 million. Of this, CAN$1,158 million was paid in cash on completion while the balance has been deferred through a warrant entitling Hunting to preferred equity shares in the purchaser’s parent company.
Hunting intends to use the proceeds from the disposal to make acquisitions and eliminate net borrowings.
Dennis Proctor, chief executive of the group, comments, ‘We are delighted to have completed the disposal of Gibson, in what has been a challenging time for global markets.’
Gibson’s chief executive Terry Gomke stepped down from the business on completion of the sale.
