Sound Energy Gets Court Consent For Share Premium Account Cancellation (ALLISS)

14th Mar 2018 12:59

LONDON (Alliance News) - Sound Energy PLC said Wednesday the High Court in England & Wales has approved the cancellation of its share premium account as part of its asset sale to London-listed Saffron Energy PLC.

The reduction of capital has released GBP277.7 million of distributable reserves for Sound Energy and enables it to receive 185.9 million Saffron Energy shares as part of the sale of its Italian assets.

The shares will go directly to Sound Energy shareholders once the sale is completed, and constitutes an indirect repayment of capital by the company to its shareholders.

Sound Energy announced late January the sale to Saffron, which is to change its name to Coro Energy PLC, of its entire portfolio of Italian assets.

Saffron is buying the entire share capital of Sound Energy's Italian subsidiary Sound Energy Holdings Italy Ltd, by issuing the 185.9 million new shares to Sound Energy shareholders.

Saffron also agreed to grant Sound a royalty of 5% on all revenue derived from any wells drilled on the exploration license D.R.74 AP, colloquially referred to as 'Laura'.

As the purchase is being considered as a reverse takeover, Saffron's shares are suspended from trading temporarily in London.

Sound Energy shares were down 0.6% on Wednesday at 44.65 pence each.