Business news from Ukraine

NOVINSKY’S COMPANY INCREASES STAKE IN REGAL PETROLEUM

21 June , 2019  

Pelidona Services Limited (Cyprus) from Smart-Holding of Ukrainian MP and businessman Vadim Novinsky has increased its stake in Regal Petroleum Plc with assets in Ukraine from 54% to 82.65%, and companies from the EastOne Group of Ukrainian businessman Victor Pinchuk sold the shares to the Smart-Holding’s company.
“A stake in the amount of 91.868 million shares was bought out from the major shareholder of Regal Petroleum Plc – Kylestone Limited – as part of the implementation of Smart-Holding’s fossil fuel production business development strategy. Pelidona Services Limited does not intend to continue the further buyout of shares in the market,” Smart-Holding said in a press release of on Friday.
“We confirm the fact of the deal to sell Regal Petroleum’s shares. The transaction was carried out as part of the portfolio strategy of the EastOne Group. We remain in the oil and gas sector of Ukraine, continue focusing on the development of assets under the group’s mandate, and exploring new opportunities,” EastOne, which includes Geo Alliance Group, a large gas and condensate producer in Ukraine, told Interfax-Ukraine.
According to the information on the London Stock Exchange (LSE) website, on the AIM platform where Regal Petroleum shares are traded, their quotations on June 20 (closure) were 39.95 pence. At that price the transaction could be valued at GBP 36.7 million (about $46.6 million).
“The results of the transaction will not affect the corporate governance of Regal Petroleum and its status as a public company. No changes are planned for the board of directors,” Smart Holding said in the press release.
The holding said that Regal Petroleum shows good performance and will continue being the basis of gas production, and its development strategy provides for both organic business growth by increasing production at existing fields and the acquisition of new assets.
“Smart-Holding is confident that deeper integration with public platforms for placement of shares is a tool for increasing capitalization, this will give gas production businesses greater stability and will open additional opportunities for mutually beneficial cooperation with new institutional investors,” Smart-Holding said.
In a stock exchange report on Friday, the majority shareholder said that the long-term development and growth of Regal Petroleum at AIM may also include expanding the shareholder base in the future.

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