HUNTING, the international energy service company, said yesterday it had sold its Hunting Energy France (HEF) operations to Finergy, a new company established by a group of French investors including two directors of HEF.
The price is £11million, of which £8.8million will be paid on completion, with the balance of £2.2million deferred and paid in bonds earning interest at 8% a year. The bonds are redeemable on December 31, 2017, but may be repaid earlier at the discretion of Finergy.
For the year to December 31, 2008, the business generated pre-tax profits before taxation of £2.5million. Hunting expects to recognise a gain of about £3million on the disposal of HEF.
Dennis Proctor, chief executive of Hunting, said: “The disposal of Hunting Energy France has been anticipated for some time. This is a further step by Hunting to focus the group on core upstream energy services, where we intend re-investing the proceeds.”
HEF comprises four France-based businesses – Interpec, Larco, Setmat and Roforge – providing petrochemical equipment and services.
Hunting has a significant presence in the north-east through tubular operations at Portlethen and Montrose, at the Hunting Cromar wireline and pressure-control business in Aberdeen and at Aberdeen well-intervention specialist Welltonic – which it acquired in a £9million deal this month.
Hunting shares rose 4.4% to 567.5p