31 March 2011
NZX Market Announcement: Asset Swap Transaction with Widespread Energy Completed
A special meeting of each of Widespread Energy and Widespread Portfolios was held on 30 March to consider a resolution to approve an asset swap transaction between the companies. The resolution was passed by both companies. All other conditions to the asset swap transaction are also now satisfied and accordingly the transaction has now been completed.
Completion of this transaction has resulted in the following key outcomes:
Widespread Energy now owns as its sole investment 100% of Mineral Prospecting License 50270 over part of the central Chatham Rise to pursue the development of a rock phosphate resource. This project has been valued under the transaction at NZD$34 million.
Widespread Energy has divested to Widespread Portfolios all of its interest in Akura Limited, Green Gate Limited and Petroleum Exploration Permit 38526 over the Kotuku oil seeps on the West Coast.
Widespread Energy has allotted 4,099,627 ordinary shares for $0.70587 per share to Widespread Portfolios thereby increasing its control percentage in Widespread Energy by 8.1% to 26.26%.
Accordingly Widespread Portfolios no longer holds any direct interest in the Chatham Rise Rock Phosphate Project. Instead Widespread Portfolios has an increased shareholding in Widespread Energy and a more diversified investment portfolio encompassing direct and indirect interests in oil and gas permits in New Zealand and in Fiji.
The Board considers that the transaction has successfully rationalised Widespread Energy’s operations in order for it to pursue a Canadian initial public offering and TSX listing this year.
For and on behalf of the Board