Disposal of Hunting Energy Fr

RNS Number : 5698E

Hunting PLC

22 December 2009

 



For Immediate Release

22 December 2009

Hunting PLC

("Hunting" or "the Company")

Disposal of Hunting Energy France

Hunting PLC (LSE:HTG), the international energy services company today announces the disposal of its Hunting Energy France operations ("HEF") to FINERGY, a new company established by a group of French investors, including two directors of HEF, to acquire the business. The total consideration is £11.0m, of which £8.8m will be paid on completion with the balance of £2.2m to be deferred and paid in the form of bonds earning interest at an annual rate of 8%. The bonds are redeemable on 31 December 2017 however may be repaid earlier at the discretion of FINERGY.

The book value of the gross assets and net assets of HEF as at 30 June 2009 were approximately £22.4m and £16.2m respectively. HEF declared and paid a £5.6m dividend to Hunting on 31 July 2009 which together with trading results in the year to date reduces net assets to approximately £11.0m at the end of November 2009. For the year ended 31 December 2008, the business generated a profit before taxation of £2.5m.

After the release of historic foreign exchange translation gains to the income statement, Hunting expects to recognise a gain of approximately £3.0m on the disposal of HEF.

Commenting on the disposal, Dennis Proctor Chief Executive Officer of Hunting said:

"The disposal of Hunting Energy France has been anticipated for some time.  This transaction represents a further step by Hunting to focus the group on its core upstream energy services activities, where we intend reinvesting the proceeds."

For further information please contact:

Hunting PLC Dennis Proctor, Chief Executive Peter Rose, Finance Director	Tel: [phone]
Buchanan Communications Ben Willey Richard Darby	Tel: [phone]

Notes to Editors:

About Hunting PLC

Hunting PLC is an international energy services provider to the world's leading upstream oil and gas companies. Established in 1874, it is a fully listed public company traded on the London Stock Exchange. The Company maintains a corporate office in Houston and is headquartered in London. As well as the United Kingdom, the Company has principal operations in Canada, China, France, Holland, Hong Kong, Indonesia, Mexico, Singapore, United Arab Emirates and the United States of America.

  About Hunting Energy France

Hunting Energy France comprises four French based businesses (Interpec, Larco, Setmat and Roforge) providing petrochemical equipment and services. Interpec supplies products for a range of applications in pipelines, terminals, refineries and power plants. Larco is a manufacturer of products for liquid storage tanks and automated systems for oil and liquid petroleum gas depot management. Setmat provides oil terminal management services and Roforge manufactures and supplies high specification forged valves for the energy and associated industries.

 

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