The initial purchase price is $170m, subject to various closing adjustments and the deposit of $36m in escrow to be held for a period of twelve months following the closing for indemnification purposes.
In connection with the purchase, all notes and sums owed by Emir Oil to the company will be transferred to the purchaser.
Upon consummation of the sale, the company will use a portion of the proceeds to repay the company’s outstanding $60m convertible senior notes.
The definitive purchase agreement was approved by the five independent directors of the company, based upon the recommendation of an independent oversight committee of the board.
The transaction is subject to certain conditions, including regulatory approvals and other customary closing conditions.
The company expects to complete the closing in the third quarter of calendar year 2011.
