Misen Energy AB (publ) secures long-term financing of the Swedish operation, sells 8 % of the shares in subsidiary Misen Enterprises AB
Misen Energy AB (publ) has of today closed the sale of 8% of the shares and shares capital in it’s subsidiary Misen Enterprises AB to the Hong Kong based company Powerful United Limited (“PUL”). PUL is controlled indirectly by Misen Energy AB (publ) shareholder TCT Holdings AB (holding 11,41% of Misen Energy AB (publ) shares) that also has provided financing to Misen Energy AB (publ) in the past.
The purchase sum amounts to 3 MEUR and was paid by PUL taking over Misen Energy AB (publ) existing debt plus cash payment amounting to 1,85 MEUR. As a result, Misen Energy AB (publ) became to be debt-free and have financing for the Swedish operation secured for the period of two years. Because of the deal, 8 % of the future dividends from operations in Ukraine will go to PUL. Also, since Misen Energy AB (publ) will remain the owner of 54.5% of Misen Enterprises AB shares, Misen Energy AB (publ) shall maintain full control of the company. Misen Enterprises AB will be consolidated in the Misen Energy group accounts as in the past but now with an increased minority share.
The agreement comprises conditions which allow Misen Energy AB (publ) to repurchase the sold shares from PUL for the purchase price multiplied by 3 (three). Misen Energy AB (publ) could exercise this right till earlier of (i) 30 April 2018 or (ii) the date of the general meeting of shareholders of Misen Enterprises AB which would consider payment of dividends. Similarly, the agreement comprises conditions which allow PUL to require Misen Energy AB (publ) to purchase back all or part of the shares from PUL within 24 months. The price of the shares would be equal to the purchase price multiplied by 3 less the amount of any dividends received by PUL from the shares in 24 months. Misen Energy AB (publ) would be required to repurchase the shares only if it has financial capability to pay the shares price without the need to obtain third-party funding.
For further information, please contact:
Göran Wolff, MD
Misen Energy AB (publ) (formerly Svenska Capital Oil AB (publ)) is a Swedish upstream oil and gas company with operations in Ukraine. The company was founded in 2004 and its shares are traded on Nasdaq First North since 12 June 2007.
In 2011, Misen Energy AB (publ) acquired Misen Enterprises AB and its Ukrainian subsidiary, LLC Karpatygaz, including the rights to 50.01% of the revenue and profit from a gas production project in Ukraine. Under IFRS rules, this transaction is classified as a reverse takeover. In consideration of the acquisition, a new share issue was carried out. The gas producing assets were acquired by production cooperation via a joint activity project governed by a Joint Activity Agreement between at that time the wholly-owned direct and indirect subsidiaries of Misen Energy AB (publ), i.e. Misen Enterprises AB and LLC Karpatygaz (together 50.01%) and PJSC Ukrgasvydobuvannya (49.99%), a subsidiary of the National Joint Stock Company Naftogaz of Ukraine. PJSC Ukrgasvydobuvannya is the largest producer of natural gas in Ukraine. The purpose of the Joint Activity Agreement is to significantly increase production of gas and oil by providing modern technologies via a large-scale investment program for the purposes of attainment of profits.
In June 2016 Misen Energy AB (publ) sold 37.5 % of Misen Enterprises AB shares to the Hong Kong based company Powerful United Limited. Owning (the remaining) 62.5% of Misen Enterprises AB shares, Misen Energy AB (publ) maintains full control of the company and preserves a right to obtain 62.5% of the future dividends from the operations in Ukraine.
The registered office of Misen Energy AB (publ) is in Stockholm and the shares are traded on First North under identification ticker MISE. The Certified Adviser of the company at Nasdaq First North is Erik Penser Bank AB.
For further information, please visit our website www.misenenergy.se.
This information is information that Misen Energy AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 14:00 CET on 3 July 2017.