Urals Energy Plc Regulatory News (UEN)

19 Nov 2009 07:00



 19 November 2009

Urals Energy Public Company Limited

("Urals" or the "Company")

Divestiture of Taas Yuriakh to Sberbank

Urals announces today the signing of the previously approved divestiture agreement between Sberbank and Urals in relation to the Company's stake in OOO Taas Yuriakhnefegazodobycha ("Taas"). 

According to the divestiture agreement signed today, Urals has transferred its 35.3% stake in Taas to OOO Sberbank Capital, a wholly owned subsidiary of OAO Sberbank, in return for full discharge of the outstanding portion of the US$500 million debt that was taken on in connection with Urals' acquisition of Taas in November 2007. The transaction is subject to filing which is expected to be completed in the next several days.

In connection with the transaction, Sberbank is releasing its security interests over the shares in Taas owned by Limenitis Holdings (an affiliate of the Ashmore Funds), allowing Limenitis to terminate its Put Option Agreement and security arrangements with Urals for nil consideration, thereby discharging Urals' obligations to Limenitis. Under the divestiture agreement Urals shares owned by certain large shareholders, which were pledged to Sberbank in connection with the financing, are also being released.

Following the completion of the long awaited Sberbank transaction, the Company now expects to publish its Annual Report and Accounts and Interim Results, hold its AGM and seek the resumption of trading in Urals shares on the AIM market of the London Stock Exchange before the year end. 

Further announcements will be made in due course.

Alexei Maximov, CEO, commented:

"Today's news is a welcome and long-awaited step in our restructuring efforts and allows us to focus on finalising and publishing our annual and interim accounts. Thereafter we look forward to requesting the resumption of trading in our shares on AIM, dealing with our remaining assets and restructuring our outstanding obligations.

With all of the Sberbank debt now cleared, Urals can return to focus on delivering shareholder growth via our two producing oil assets."

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