Dutch firm takes over Sterling Resource’s UK unit

Canadian energy company Sterling Resources has completed the sale of its UK operating subsidiary to Dutch exploration and production company, Oranje-Nassau Energie B.V. (ONE).

To remind, Sterling Resources in early March entered into a definitive agreement with ONE for the sale of its subsidiary, Sterling Resources UK Holdings Ltd. (SRUK). The company has interests in the Cladhan, Breagh, and Niadar fields in the UK North Sea.

Sterling said on Tuesday, May 16 that the purchase price paid to SRUK at closing of the transaction was $97 million.

Also, intercompany $16.8 million debt between Sterling Resources UK and the parent company was settled, bringing the total cash proceeds at closing to $113.8 million.

The company added that the expected aggregate distribution to shareholders would be in the range of $109.3 million and $112.5 million.

As a result of the completion of the transaction, Sterling no longer has active business operations or assets other than the cash proceeds from the deal.

Sterling plans to focus on the efficient winding-up of the affairs of the company, including the distribution of the net proceeds from the transaction to its shareholders, after payment of all transaction costs and satisfaction of all outstanding liabilities of the company.

The company said it does not intend to apply for delisting of the common shares from the TSX Venture Exchange, but the TSXV may on its own initiative delist the common shares or transfer the listing to the NEX Board.