Dana Gas Agrees to $236 Million Sale of Egypt Assets to IPR - Bloomberg

Dana Gas Agrees to $236 Million Sale of Egypt Assets to IPR - Bloomberg

Dana Gas PJSC agreed to sell its Egyptian oil and gas fields for as much as $236 million, enabling it to repay debt associated with Islamic bonds that mature this month.

The company, based in the United Arab Emirates, will receive $153 million in cash and as much as $83 million in contingent payments for the sale to IPR Energy Group, it said in a statement. Dana Gas also will take an impairment charge in the third quarter related to the coronavirus pandemic’s impact on its overall business, it said, without disclosing the size of the charge.

The shares rose as much as 2% to 71.4 fils, giving the company a market value of about 5 billion dirhams ($1.36 billion).

Dana Gas had targeted completing the sale in the first quarter of the year to raise cash needed to pay sukuk due at the end of this month. The sale was delayed due to the coronavirus, and Dana Gas appointed a financial adviser in July, prompting investors to question whether the company would be able to make the payment. The company announced earlier this month it was arranging a bridge loan to help pay the sukuk, of which $309 million is outstanding.