By Phil Boeyen, ShareChat Business News Editor
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Friday 28th September 2001 |
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RMG boss Jim Boult says the company has agreed the sale of its oil and gas subsidiary Frontier WA for A$3 million, which will remove debt of A$3 million from the company's balance sheet.
"The sale has been achieved in two parts, with Talisman Energy UK Ltd purchasing a section of the royalty assets of Frontier WA Pty Ltd and that company then on-sold to companies associated with Mr Paul Cooney."
Jim Boult says under the agreement RMG will retain A$1 million cash currently held by Frontier WA and the extra $2 million will be paid in two lots - one in December 2001 and one in December next year.
To help pay for the sale Mr Cooney's company, Carlita Court, is being allowed to take its 12 million shares out of escrow for sale by the end of March next year.
RMG says because the Cooney bid for the Frontier assets was the best offer it was in the best interests of the company to release the shares.
Mr Boult says the sale is another important development for RMG in improving its overall funding position and strengthening its balance sheet.
"Negotiations for the sale of these assets have been underway for some time with a number of bidders expressing interest. Ultimately the company received five firm offers."
Earlier this week the company announced it had raised A$5 million to pursue business growth through the purchase of distressed ledgers.
Meanwhile the company reports its major restructuring programme, dubbed Project One, has been completed several weeks ahead of schedule.
The restructuring programme was announced in June and included cutting 160 jobs and streamlining call centre and collection operations around Australia.
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