Norse Energy Corp. has sold 30% of the shares in the previously wholly-owned subsidiary Norse Energy do Brasil for a cash consideration of $ 30 million. The buyer is Sector Speculare (Private Equity) IV, a fund managed by Sector Omega ASA (Sector). Funds managed by Sector are also the largest shareholder in Norse Energy Corp. ASA.

The transaction values Norse Energy do Brasil at enterprise value USD 210 million. Included in this is debt of USD 43 million to the parent company Norse Energy Corp ASA. USD 10 million of the proceeds to Norse Energy Corp ASA will be used to repay a USD 10 million bridge loan recently obtained from Sector Speculare (Private Equity) IV.

The transaction is subject to approval in an extraordinary general meeting, and certain other conditions to closing. A description of the transaction is enclosed in the notice to the extraordinary general meeting on June 12th.

Norse Energy Corp. ASA has long worked to better balance its exposure between the US and Brazilian operations. This transaction improves the overall financial position of the Group and increases the flexibility to pursue further investment opportunities in each of the geographical regions.

CEO Øivind Risberg said, “I am pleased that we have found a solution that both improves our financial position and commercial flexibility. For Norse Energy do Brasil it is very positive that Sector joins Norse Energy as a direct shareholder, as this will improve our ability to jointly take advantage of the many great but capital intensive business opportunities in the energy sector in Brazil”.

Tags: Norse Energy Corp. ASA