Market Overview

Harvest Natural Resources Announces Exclusive Negotiations to Sell Company

Harvest Natural Resources, Inc. (NYSE: HNR) today announced it has entered into exclusive negotiations with Pluspetrol Venezuela S.A., an entity belonging to one of the leading exploration and production companies in Latin America, to sell the outstanding shares of Harvest.  Under the proposed transaction, at closing Pluspetrol would retain Harvest's 32% interest in Petrodelta S.A., while Harvest's non-Venezuelan assets would be contributed to a new company (SpinCo) that would be spun off to Harvest's shareholders.  SpinCo will be managed by Harvest's current management team. 

The total consideration for the proposed transaction with Pluspetrol is approximately $373 million.  This consideration for the proposed transaction includes the assumption of the Company's long-term debt and certain other obligations of the Company.  The proposed transaction would be subject to customary working capital adjustments upon closing. 

The remaining assets to be spun-off will include Harvest's interest in Gabon, Indonesia, Colombia, and China, as Harvest continues its current process to maximize the value of these assets for its shareholders. 

Harvest has agreed to negotiate exclusively with Pluspetrol for a specified period to reach a definitive merger agreement.  There can be no assurance that these negotiations will result in the proposed transaction or

See full press release

Posted-In: News Guidance Contracts Management Global

 

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