Paratus Energy Services Enhances Strategy Through Share Sale
Paratus Energy Services Completes Sale of Archer Shares
In an important move for Paratus Energy Services Ltd., the company has successfully completed a significant sale of shares in Archer Limited. This strategic decision enables the company to streamline its investments and reinforce its financial framework.
Paratus Energy has sold over 21 million existing common shares in Archer, translating to gross proceeds around USD 49 million. This transaction comes after prior support to Archer, contributing to its growth since the company’s inception.
Supportive Shareholder Relations
Throughout its journey, Paratus has consistently shown support for Archer by participating in multiple capital raises and converting shareholder loans, which have played a pivotal role in fortifying Archer’s balance sheet. Following this transaction, Paratus has transitioned its holdings, allowing key shareholders to change their indirect stake into direct ownership, ensuring continuity and stability for Archer.
CEO's Vision for the Future
Robert Jensen, the CEO of Paratus, expressed that streamlining the company’s portfolio remains a top priority. He noted this share sale as a timely move to realize returns on a non-core asset, reinforcing the firm's commitment to enhancing its strategic position.
Financial Flexibility and Debt Management
Proceeds exceeding USD 30 million from this share sale will aid Paratus in addressing some of its existing debt obligations. This planned allocation reflects the company's focus on maintaining a strong financial footing while strategically positioning itself for future growth.
Strengthening Corporate Structure
With the successful completion of this secondary sale, Paratus Energy is reinforcing its commitment to simplifying its corporate structure. The company is drafting additional measures aimed at ongoing value creation for its shareholders.
Advisors and Collaborations
To facilitate this transaction, Paratus engaged with several notable advisors, including renowned financial institutions. Their expertise helped guide the successful execution of this share sale, positioning the company for future endeavors.
About Paratus Energy Services Ltd.
Paratus Energy Services Ltd. is an investment firm held by a group of prominent energy service businesses. The firm primarily invests in offshore drilling through its ownership of Fontis Energy and maintains a joint venture in Seagems, both operating in strategic markets. Their ongoing commitment to innovative energy solutions showcases their dedication to excellence in the energy sector.
Frequently Asked Questions
What is the significance of the share sale completed by Paratus?
The share sale allows Paratus Energy to strengthen its balance sheet and focus on core investments, enhancing financial flexibility.
How many shares were sold in the secondary sale?
Paratus sold 21,583,826 existing common shares in Archer through this secondary sale.
How will the proceeds from the sale be utilized?
Proceeds exceeding USD 30 million will be used towards reducing the company's outstanding debt obligations.
Who are the main shareholders affected by this transaction?
The move allows Hemen Holding Limited and Lodbrok Capital LLP to transition from indirect to direct ownership of their shares in Archer.
What is the overall strategy of Paratus going forward?
The company aims to streamline its operations, simplify its structure, and enhance its strategic positions for long-term growth and value creation.
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