PROPERTY DISPOSITION / LASMO Announces Sale of Colombian
Business
LASMO PLC
NYSE SYMBOL: LSO
JULY 24, 1998
LASMO Announces Sale of Colombian Business
LONDON,ENGLAND--LASMO plc, the international oil and gas
exploration and production company, today announced that it has
agreed to the sale of its subsidiary, LASMO Oil (Colombia) Limited
(LOCL) to Braspetro Oil Services Company for US$151 million. In
addition, the transaction also provides LASMO with the option to
evaluate and acquire assets offshore Brazil.
The sale will have an effective date of January 1, 1998, with
closing expected to take place later this year. The book value at
mid year was some 46 million pounds and the transaction will
generate a profit on disposal for LASMO of approximately 50
million pounds. On a proforma basis, LASMO's balance sheet gearing
reduces by some 9 percent at mid 1998.
Seventy-five percent of the Colombian sale consideration (US$114
million) will be received in cash on closing and used for ongoing
business activities with the remaining 25 percent deferred until
April 1999, guaranteed and deductible against the possible
acquisition in Brazil.
Commenting on the transaction, LASMO's Chief Executive Joe Darby
said, "As indicated earlier this year, LASMO's withdrawal from
Colombia and the review of our Italian business reflect our
strategy of concentrating our resources on material businesses
with growth opportunities. We are very pleased with the successful
sale of our Colombian business, which attracted a high level of
interest from potential purchasers at a time of low oil prices."
"This agreement also builds upon LASMO's established relationship
with Braspetro in Azerbaijan where we are jointly bidding for a
share in the deep water Alov block in the Caspian Sea and
positions LASMO to participate in the opportunities that may be
available as Brazil opens its upstream sector to foreign
investment."
In addition to LASMO's listing on the New York Stock Exchange,
LASMO shares trade on the London, Toronto and Montreal Stock
Exchanges. Shares are quoted on the SEAQ System, and prices may be
accessed on the Reuter Equities 2000 Service under the symbol
LSMR.L and on Quotron under the symbol LSMRU.EU. |
