The board of Range Resources Limited (ASX:RRS/AIM:RRL) (“Range” or “the Company”) notes the announcement, dated 14 October 2013, from International Petroleum Limited (NSX:IOP) (“International Petroleum”), whereby International Petroleum announced it had entered into two binding conditional terms sheets for the sale of its assets in Kazakhstan (“Kazakhstan Assets”) and Russia (“Russian Assets”) for US$60 million.
As previously announced (24 April 2013), Range had proposed a merger with International Petroleum, subject to various conditions being met, which when announced was likely to be conducted as an offmarket takeover offer by Range to International Petroleum shareholders. In conjunction with the proposed merger Range has advanced US$8 million in secured loan financing to International Petroleum.
While the sale process for the Russian Assets was known to and supported by the Range board, the final terms of the proposed transaction, and the sale of the Kazakhstan Assets have only now been defined. As a result of clarity on the sale of these assets, the likely proceeds from this sale and the associated shift in focus of International Petroleum to its African assets, Range will now identify and consider a range of corporate alternatives to the original merger proposal, which may or may not include a merger of the two companies – albeit on terms to be renegotiated.
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