LONDON (Alliance News) - Gulf Keystone Petroleum Ltd shares were trading higher on Wednesday morning after it was revealed that the Prudential PLC's asset management arm M&G Investments sold its entire stake in the business.
Gulf Keystone shares were up 4.1% to 6.87 pence per share on Wednesday morning.
M&G sold a total of 49.2 million shares in the Iraq-focused oil producer, equivalent to a 5.0% stake in the business.
The shares were sold on Monday and Gulf Keystone was notified about the transaction on Tuesday.
Gulf Keystone said back in March that it was facing "material uncertainties" and may be unable to meet its debt obligations this year as it continues to claw back money it is owed from Kurdistan regional government of Iraq for the oil it exports out of the country.
Gulf Keystone is due to pay a USD26.4 million coupon payment on April 18, but said that even if it is in a position to cover that payment, then the next coupon payment due in October would require the company to raise additional funding.
If the company is unable to meet those obligations, then the holders of the loan notes would have the right to call for an immediate repayment of the outstanding loans in full.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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Prudential (PRU)
Gulf Keystone Petroleum (GKP)