Sharechat Logo

Remaining RMG petroleum assets sold

By Phil Boeyen, ShareChat Business News Editor

Friday 28th September 2001

Text too small?
Former RMG (NZSE: RMG) managing director Paul Cooney has been permitted to take 12 million RMG shares out of escrow in order to buy Frontier Petroleum assets.

RMG boss Jim Boult says the company has agreed the sale of its oil and gas subsidiary Frontier WA for A$3 million, which will remove debt of A$3 million from the company's balance sheet.

"The sale has been achieved in two parts, with Talisman Energy UK Ltd purchasing a section of the royalty assets of Frontier WA Pty Ltd and that company then on-sold to companies associated with Mr Paul Cooney."

Jim Boult says under the agreement RMG will retain A$1 million cash currently held by Frontier WA and the extra $2 million will be paid in two lots - one in December 2001 and one in December next year.

To help pay for the sale Mr Cooney's company, Carlita Court, is being allowed to take its 12 million shares out of escrow for sale by the end of March next year.

RMG says because the Cooney bid for the Frontier assets was the best offer it was in the best interests of the company to release the shares.

Mr Boult says the sale is another important development for RMG in improving its overall funding position and strengthening its balance sheet.

"Negotiations for the sale of these assets have been underway for some time with a number of bidders expressing interest. Ultimately the company received five firm offers."

Earlier this week the company announced it had raised A$5 million to pursue business growth through the purchase of distressed ledgers.

Meanwhile the company reports its major restructuring programme, dubbed Project One, has been completed several weeks ahead of schedule.

The restructuring programme was announced in June and included cutting 160 jobs and streamlining call centre and collection operations around Australia.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Special Report: Strathmore Untangled