The Hurricane Energy PLC (LON: HUR) share price fell 0.75% after announcing that its board of directors had decided to pay the Supplementary Dividend in full once the court-sanctioned scheme of arrangement under which the acquisition is being conducted becomes effective.
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The energy company reminded investors that the recommended acquisition by Prax of the entire issued and to-be-issued share capital of Hurricane was to be effected by means of a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006.
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Once the scheme becomes effective, Hurricane Energy’s board will pay the Supplementary Dividend of 1.87 pence per share (£37.2 million) at the same time as the Transaction Dividend of 3.32 pence per share (£66.1 million) and the Cash Consideration of 0.83 pence per share (£16.5 million), all within 14 days of the Scheme becoming Effective.
Prax Exploration & Production PLC has committed to acquiring Hurricane Energy in a deal progressing well, with the firm set for eventual delisting from the LSE’s AIM Market in due course. In addition, the company recently reported its full-year earnings results, which were quite impressive.
According to its earnings results, the company generated a profit of $108.7 million in 2022, driven by upbeat crude oil prices, compared to the $18.2 million profit generated in 2021. The firm also generated record revenues of $310.8 million in 2022 versus $240.5 million in 2021.
Hurricane Energy is a company that performs exceptionally well according to industry standards, which explains why Prax was willing to pay a premium for the company despite the Lancaster oil field having a limited operational timeframe.
Those familiar with Hurricane Energy shares will remember that the company’s shares crashed two years ago after the proven and probable reserves were downgraded. Then, a new management team was appointed to steer the company to its current successes.
The current sale process was triggered by one of its majority shareholders wanting to exit their position forcing the company to engage in a formal sale process.
*This is not investment advice.
Hurricane Energy (HUR) share price.
The Hurricane Energy share price fell 0.75% to trade at 7.657p, from Thursday’s closing price of 7.715p.
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