Orcadian Completes Sale of 50% Stake in HALO Offshore UK
Why we think this is neutral
This RNS announcement is a regulatory update on the completion of the sale of 50% of HALO Offshore UK Ltd to Independent Power Corporation Plc. While the transaction represents progress in Orcadian's strategy, the RNS does not provide any financial details or performance metrics for Orcadian's core business. Without a material impact on the company's financials, the overall sentiment is neutral.
Key Points
- Orcadian Energy has completed the sale of 50% of HALO Offshore UK Ltd to Independent Power Corporation Plc (IPC)
- IPC has appointed two directors to the HALO board
- Orcadian and IPC intend to seek production acquisition opportunities for HALO, focusing on low-emissions, non-operated, gas producing licences
- HALO has incurred around £50 million of pre-trading capital expenditures, expected to generate around £115 million in tax allowances
- IPC has provided a loan of up to £539,000 to HALO and agreed to provide at least £5 million in non-dilutive funding and additional dedicated funding lines to finance acquisitions
Summary
Orcadian Energy has completed the sale of 50% of the ordinary shares of HALO Offshore UK Ltd to The Independent Power Corporation Plc (IPC). IPC has appointed two directors to the HALO board, and Orcadian and IPC intend to seek production acquisition opportunities for HALO, focusing on low-emissions, non-operated, gas producing licences. HALO has incurred around £50 million of pre-trading capital expenditures, which are expected to generate around £115 million in tax allowances. IPC has provided a loan of up to £539,000 to HALO and has agreed to provide at least £5 million in non-dilutive funding and additional dedicated funding lines to finance acquisitions.