Brief: North Energy: EGM to consider new corporate and management structure

North Energy ASA

27/04/2016 09:12

April 27 (Reuters) - North Energy  NORTH.OL  says: 
    * The board has adopted a proposal for a new corporate and 
management structure  
    * The Board of Directors has therefore decided to hold an 
Extraordinary General Meeting on 18 May 2016 
    * The planned new structure is also in part subject to 
approval from the Ministry of Petroleum and Energy 
    * The purpose of the reorganisation is to create a more 
flexible and robust corporate structure which includes 
organizing its existing and new business segments in separate 
subsidiaries 
    * Initially the Company will transfer all of its E&P related 
activities to North E&P AS (formerly Explora Petroleum AS) 
    * Will outsource certain strategic, financial and business 
advisory services to North Advisors AS ("North Advisors"), which 
is an advisory company to be owned by a group of key 
stakeholders of the Company, consisting of Anders Onarheim, 
Rachid Bendriss and Didrik Leikvang 
    * The management team of North Advisors currently owns 
directly and indirectly 14.3 per cent of the shares in North 
Energy 
    * To facilitate the new corporate structure North Energy, a 
new subsidiary of North Energy to be named North Energy Capital 
AS ("NE Capital"), and North Advisors will enter into a 
transaction agreement whereby North Energy will transfer 
substantially all of its financial and operational assets to NE 
Capital 
    * Settlement of the transaction shall be made through a 
consideration of new preference shares and 80 per cent of the 
ordinary shares in NE Capital 
    * North Advisors will hold the remaining 20 per cent of the 
ordinary shares 
    * The preference shares held by North Energy will be 
redeemed over three years and the Company intends to use the 
proceeds received as dividend payments to shareholders in North 
Energy 
    * The Board of Directors of North Energy believes the 
current dislocation in energy markets will present attractive 
investment opportunities and will evaluate opportunities within 
the new scope of its articles of association including 
activities within other energy forms and oil services 
 
Source text for Eikon:  ID:nHUGYswWR  
 
 (Reporting By Stine Jacobsen) 
 ((stine.jacobsen@thomsonreuters.com;))