Oil and natural gas company Harvest Natural Resources Inc. (HNR: Quote) said Thursday its subsidiary HNR Energia B.V. has signed a Share Purchase Agreement with Indonesia's PT Pertamina to sell all of the company's interests in Venezuela for $725.0 million in an all-cash transaction. The company said the net proceeds from the sale are estimated to be about $525.0 million after deductions for transaction related costs and taxes.
Following the news, shares of Texas-based Harvest Natural more than doubled in after hours trade on the New York Stock Exchange.
According to the company, the buyer will purchase its 32 percent interest in Petrodelta, S.A. by acquiring HNR Energia B.V.'s 80 percent interest in Harvest-Vinccler Dutch Holding B.V. The effective date of the transaction is January 1, 2012.
The closing of the transaction is subject to, among other things, approval by the Government of the Bolivarian Republic of Venezuela, the Government of Indonesia in its capacity as the buyer's sole shareholder and a majority of the company's stockholders.
If all of the conditions to closing are not satisfied or not waived on or before March 21, 2013, either the buyer or Harvest may terminate the SPA. The Boards of Directors of Harvest and Pertamina have each approved the transaction.
James Edmiston, President and CEO of Harvest, said, "The signing of the SPA represents a significant step forward in the strategic alternatives initiative we began in 2010 and clearly validates the potential of Petrodelta's business and Harvest's twenty year partnership with PDVSA in Venezuela."
HNR closed Thursday on the NYSE at $4.88, down $0.40 or 7.58%. In after hours, the stock surged $5.14 or 105.33%.
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by RTT Staff Writer
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