Business Irish

Saturday 25 November 2017

Macquarie sells 6pc stake in PetroNeft Resources

New ground: PetroNeft's exploration works in Russia
New ground: PetroNeft's exploration works in Russia
Sarah Stack

Sarah Stack

SHARES in exploration firm PetroNeft Resources remained unchanged as it emerged that one of its biggest investors sold its 6pc holding.

The Macquarie Bank traded its 42.9 million shares for 5.37 pence last week.

The vast majority of the stock was taken by a large institutional investor, which is understood to be a shareholder with a small stake in the firm.

An announcement is due to by made to the markets.

The remainder of the shares, which were placed by Davy, went to small private clients.

They were bought for 5.37 pence, below yesterday's price which remained steady at 5.55 pence in London.

PetroNeft had told the Irish Stock Exchange it had received notification from Macquarie Group Ltd, on behalf of Macquarie Bank Ltd, that following market trades on 18 July 2014 "it no longer holds a notifiable interest in the issued share capital of PetroNeft".

Last month the oil and gas exploration firm received regulatory approval from Russian authorities to farm out a licence there to Oil India. It received an initial $35m (€25.5m) payment, which was used to repay all debts - including $8.4m was due to Macquarie.

The firm recently recorded a pre-tax loss of $11.5m for 2013, up from a loss of $2.8m a year earlier. However the latest deal left it debt free, with cash for working capital purposes.

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