Sound Energy (AIM:SOU) plunged 41.9% to 2.73p after agreeing to sell its remaining 20% interest in the Tendrara concession to Managem for US$57m.
The company, meanwhile, highlighted that the completion will eliminate balance sheet debt and leave approximately US$11m of cash. The disposal is accompanied by the relinquishment of its 27.5% non-operated interest in the Anoual Exploration Permit and the waiver of any rights in the Grand Tendrara Exploration Permit.
The deal will be conditional on shareholder approval (along with other regulatory and administrative approvals) and carries a longstop of three months with a one-month automatic extension.
Sound Energy expects completion on 31 July, and if the transaction and the proposed mandatory note redemption occur as envisaged the company says it will eliminate balance sheet debt and finish with approximately US$11 million of cash, while post-completion Managem will hold a 75% operated interest with ONHYM retaining 25%.
"This transaction represents a transformational milestone for Sound Energy, crystallising significant value for shareholders while allowing the company to emerge debt free and reallocate capital towards energy transition opportunities," said Majid Shafiq, Chief Executive Officer.
