Cobalt International Energy (CIE) Reports Purchase and Sale Agreement with Sonangol Terminated
- Wall Street gains, helped by oil, economic data
- Twitter (TWTR) 'Takeover Money' Moves On as 'Trump Money' Moves In
- Buy Any Seasonal Market Weakness Ahead of Year End Rally - Oppenheimer (SPY)
- Unusual 11 Mid-Day Movers 12/5: (NVCN) (BCEI) (MEMP) Higher; (GTXI) (CERC) (HDSN) Lower
- Oil hits 16-month high in buying rush after OPEC agreement
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Cobalt International Energy (NYSE: CIE) disclosed in an SEC filing:
On August 22, 2016, the purchase and sale agreement (the “Purchase and Sale Agreement”) between Cobalt International Energy Angola Ltd. (“Cobalt Angola”), a wholly-owned subsidiary of Cobalt International Energy, Inc. (the “Company”), and Sociedade Nacional de Combustíveis de Angola-Empresa Pública (“Sonangol”) was automatically terminated pursuant to its terms.
On August 22, 2015, Cobalt Angola executed the Purchase and Sale Agreement with Sonangol for the sale by Cobalt Angola to Sonangol of the entire issued and outstanding share capital of CIE Angola Block 20 Ltd. and CIE Angola Block 21 Ltd., which respectively hold the Company’s 40% working interest in each of Block 20 and Block 21 offshore Angola for aggregate gross consideration of $1.75 billion before Angolan withholding taxes of approximately $19.7 million (to be netted out of the gross consideration to be paid to Cobalt Angola) and certain other U.S. and Angolan taxes, expenses, and contingent liabilities. Sonangol Pesquisa e Produção, S.A., an affiliate of Sonangol, currently holds a 30% working interest in Block 20 and a 60% working interest in Block 21. The closing of the sale was subject to Angolan government approvals. In accordance with the Purchase and Sale Agreement, Sonangol had previously paid the Company $250.0 million.
If the requisite Angolan government approvals were not received within one year from the execution date of the Purchase and Sale Agreement, the Purchase and Sale Agreement provides that it is to automatically terminate and any obligations executed by the parties thereto shall be restituted in order to put such parties in their original positions as if no agreement had been executed. As the requisite Angolan government approvals were not received within one year, the Purchase and Sale Agreement automatically terminated. The Company plans to work with Sonangol to understand and agree on the financial and operational implications of the termination. The Company has begun the marketing and sale process of its Angolan assets.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Caterpillar (CAT) Offers FY17 Guidance Update at Credit Suisse Conference
- Axsome Therapeutics (AXSM) Files $200M Mixed Securities Shelf
- S&W Seed (SANW) Files $100M Mixed Securities Shelf
Create E-mail Alert Related CategoriesCorporate News, Hot Corp. News, Mergers and Acquisitions
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!