InterOil Sells Downstream Businesses To Singapore's Puma Energy For $525.6 Mln

(RTTNews) - InterOil Corp. (IOC), an oil and gas company with a primary focus on Papua New Guinea, Monday announced the sale of companies that hold its Papua New Guinea oil refinery and petroleum products distribution businesses to Singapore-based Puma Energy Group Pte for $525.6 million.

The sale enhances its focus on higher-returning upstream and LNG business, the company noted.

According to InterOil Chief Operating Officer Jon Ozturgut, the sale followed an unsolicited approach from Puma Energy and a strategic review by the firm of options for the best allocation of capital.

The consideration includes adjustments for cash and working capital.

InterOil said its downstream businesses include the Napa Napa refinery in Port Moresby that processes about 28,000 barrels a day, 52 service stations, and 30 fuel depots, terminals and aviation sites.

Under the deal, all InterOil staff who are employed in the refinery and downstream businesses will be moved to Puma Energy. Both companies will begin the handover of operations and transition of staff immediately. The company added that as a condition of the sale, Puma Energy may use the InterOil downstream brand for up to 12 months.

Ozturgut said, "... our upstream and LNG business has become core to the company's growth and, as a result of the success we have had in discovering and monetizing gas, the time is right to focus on this part of our business."

The company noted that the transaction immediately provides additional capital to fund its upstream and LNG business.

Petroleum products distributer Puma Energy's major shareholders include Dutch commodity trading company Trafigura Beheer BV, and state-owned Angolan oil and gas company Sonangol Holdings LDA

In the transaction, BNP Paribas and BSP Capital acted as financial advisors and Gadens acted as legal advisor to InterOil. King & Wood Mallesons acted as legal advisor to Puma Energy.

On the NYSE, InterOil shares closed Friday's trading at $62.88, up $0.23 or 0.37 percent.