LG Closes US$50MM Acquisition Of Kazakhstan-Focused Subsidiary Of Roxi Petroleum

Transaction Type
Sellers
Buyers
Announce Date
Post Date
Close Date
Estimated Price
50MM
Description

Closed acquisition of co. with interest in NW Konys Field, Kazakhstan.

South Korean multinational trading company LG International Corp. (OTCBB: LGTRF) has closed its acquisition of a 40% interest in Kazakhstan-focused Galaz and Co. LLP from Galaz Energy BV, an indirect subsidiary of Roxi Petroleum Plc, London, (London AIM: RXP) for US$50 million in cash, assumed debt and field development costs.

The purchase price included US$15.6 million in cash, US$8.4 million for existing debt, repayable through future production, and up to US$26 million for the appraisal and development of NW Konys Field in Kazakhstan.

As part of the back-to-back agreement, Galaz Energy, which currently has a 73.4% interest in Galaz and Co., acquired an additional 24.6% from its partners.

Galaz Energy retains a 58% interest in the operating company.