21st Jan 2020 14:10
(Alliance News) - Oil & gas exploration firm Capsian Sunrise PLC on Tuesday said it has agreed to acquire a drilling vessel in a deal worth USD25 million.
The Caspian Explorer vessel is capable of drilling wells of up to 6,000 metres, Caspian Sunrise added. Its a vessel designed specifically to drilling in the northern Caspian Sea, which has "extreme shallow waters".
The majority owner of the vessel, a member of the Oraziman family, will be issued roughly 160.3 million Caspian Sunrise shares, at 12.00 pence each, USD25 million in total. The 12.00p price is a 28% premium to the company's 9.40p closing price on Monday.
Caspian Sunrise shares were 2.3% lower at 9.18p each in London on Tuesday afternoon.
The company added the deal will count as a "related party transaction" given that the seller is a member of the Oraziman family. Kuat Oraziman is Caspian Sunrise's chief executive.
The deal will see the family boost their holding in the London-listed firm to 44% from 43%.
The purchase is subject to the approval from the company's shareholders at its annual general meeting on Thursday.
Caspian Sunrise said: "The independent directors believe the Caspian Explorer to be the only currently operational drilling vessel of its type capable of operating in water as shallow as 2.5 meters in the Caspian Sea. Further, given the lead times and construction costs, the independent directors do not expect a new competing drilling vessel to enter the market in the next few years."
By Eric Cunha; [email protected]
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