REG - SDX Energy PLC - HEADS OF TERMS SIGNED FOR DISPOSAL OF EGYPT ASSETS

SDX EnergyAnnouncement

30/08/2023 10:30

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RNS Number : 8152K  SDX Energy PLC  30 August 2023

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY SDX TO
CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATION
(EU) NO. 596/2014 ("MAR"). ON THE PUBLICATION OF THIS ANNOUNCEMENT VIA A
REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW
CONSIDERED TO BE IN THE PUBLIC DOMAIN.

 

30 August 2023

HEADS OF TERMS SIGNED FOR THE DISPOSAL OF EGYPTIAN ASSETS

 

·   SDX has signed Heads of Terms for the disposal of all its Egyptian
assets;

·   The buyer is a large multinational operator, with existing Egyptian
interests;

·   The transaction is expected to complete by the end of Q4 2023;

·   Under new senior management SDX is seeking to optimise its asset
portfolio, enabling it to position the company for both organic and inorganic
growth;

·   SDX continues to examine value-accretive opportunities across Moroccan
energy infrastructure and the energy transition.

 

The Company is pleased to announce that it has entered into non-binding Heads
of Terms ("Heads of Terms") with a large multinational operator to divest of
all of its Egyptian assets (the "Disposal"). The Company expects to close the
transaction by year-end.

 

The signed Heads of Terms represents an important milestone, towards
crystallising value for shareholders and optimising the Company's asset
portfolio. The Disposal will position the Company for upcoming diversification
into Morocco's energy transition sector. Moving towards the energy transition
narrative also gives access to a wider pool of capital, setting SDX on a new
path of growth with the ultimate aim of delivering sustainable returns for
shareholders.

 

It is envisaged that the Disposal, if completed, would constitute a
fundamental change of business pursuant to AIM Rule 15 - the consideration, as
currently calculated in the Heads of Terms, will significantly exceed the
market cap Consideration Test threshold. The Disposal would therefore also
require the consent of SDX shareholders being given in a general meeting. Upon
signing a sale and purchase agreement, the Company will issue a further
announcement and publish a circular containing details of the Disposal and
convene a general meeting.

 

Completion of the Disposal will be subject to, among other conditions, the
negotiation of final transaction documentation and obtaining Egyptian
government approvals for the sale. The Heads of Terms are non-binding and,
therefore there can be no certainty that the Disposal will complete.

 

The Company will make further announcements as appropriate.

 

Daniel Gould, Managing Director, commented:

 

"The planned sale of SDX's Egyptian assets will be a significant milestone on
the Company's transition roadmap that we will soon be presenting to our
shareholders. SDX, re-energised with new management, will focus on monetising
exciting opportunities around its Moroccan assets and related energy
transition sector-plays in order to reward and deliver capital growth to our
shareholders in the near term."

 

 

 

For further information:

 

 SDX Energy Plc

 Daniel Gould, Managing Director

 William McAvock, Chief Financial Officer

 Tel: +44 (0) 20 3219 5640

 Shore Capital (Nominated Adviser and Broker)                                             Shore Capital (Nominated Adviser and Broker)

 Toby Gibbs/Iain Sexton                                                                   Toby Gibbs/Iain Sexton

 Tel: +44 (0) 20 7408 4090                                                                Tel: +44 (0) 20 408 4090

 InHouseIR (Investor and Media Relations)

 Sarah Dees/Oliver Clark

 Email: sdx@inhouseir.com

 Tel: +44 (0) 78 8165 0813 / +44 (0) 20 3239 1669

 Camarco (PR)

 Billy Clegg/Owen Roberts/Violet Wilson                                                   Camarco (PR)

 Tel: +44 (0) 20 3757 4980                                                                Billy Clegg/Owen Roberts/Violet Wilson

                                                                                        Tel: +44 (0) 203 757 4980

 

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