Range Resources Ltd (LON:RRL, ASX:RRS) has confirmed it is moving forward with the proposal to acquire drill contractor RRDSL from LandOcean, signing a sale and purchase agreement which sets out the terms of the transaction.
An independent valuation of the drilling business unit - comprising a fleet of 12 rigs including four that were recently purchased - set a fair market value of US$5.5mln, Range said.
The transaction will be classed as a reverse takeover, under AIM rules. For the deal to go ahead the company will require shareholder approval and as such it intends to convene a shareholder general meeting during the third quarter.
In the meantime, the company’s shares will be suspended from trading on AIM and the ASX.
Range also noted that LandOcean has agreed new repayment terms on the debt owed by the company. LandOcean has extended Range’s debt maturity by three years and has the reduced interest rate to 6% from 10%. Range will not have any repayment obligations until April 2020.
The company owes US$39mln to LandOcean.