Nostrum Oil & Gas (LSE:NOG) has agreed to sell its Kazakhstan operations, Zhaikmunai and POSITIV Invest, to Altaris Holding for $304.6 million.
The buyer is owned by Fincraft Energy Holding and Alturion Holding, and the price is subject to adjustments for net working capital, net debt and cash at completion.
Nostrum's senior secured notes matured on 30 June and the group said it could not repay them, a shortfall that has driven the decision to sell the business and wind down the group afterward.
The board expects the proceeds to repay the senior secured notes in full and the senior unsecured notes in part.
Senior unsecured noteholders are currently targeted to receive an initial repayment of around $150 million, with the group flagging the possibility of further, smaller repayments over time depending on working capital adjustments, wind-down costs and contingent liabilities.
Nostrum does not expect a material distribution to ordinary shareholders but has not ruled one out at the end of the wind-down process.
An ad hoc group representing more than 50% of senior unsecured noteholders has expressed support for the sale and the wind-down plan, though formal approval still requires a consent solicitation process.
The deal carries a long-stop date of 15 September, extendable by two months, and remains subject to Kazakh merger control clearance and other conditions.
News Intelligence what this means for the company
Nostrum Oil & Gas has agreed to sell its entire Kazakhstan operations to Altaris Holding for $304.6 million and will wind down thereafter, unable to service senior secured notes that matured on 30 June. The proceeds will repay senior secured noteholders in full and senior unsecured noteholders partially (targeted at ~$150 million initially), with ordinary shareholders facing no material distribution. This is a liquidation event: the company is exiting its core business to meet debt obligations it cannot otherwise service.
The sale price of $304.6 million against net debt of $576.2 million at 31 March 2026 leaves a shortfall even before wind-down costs and contingent liabilities, underscoring the severity of Nostrum's financial distress. Ordinary equity holders face dilution to near-zero value; the investment case has collapsed from a going concern to an orderly liquidation.
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