Dana Gas announced that all shareholders present, or by proxy (representing a quorate of over 62.3% of its shareholders) voted unanimously in favour of the consensual restructuring of its $700mn sukuk al-Mudarabah at the recent general assembly meeting.
This follows the previously announced consent for the restructuring terms from 90.9% of the 9% ordinary sukuk certificate holders and 96.4% of the 7% exchangeable sukuk certificate holders with none voting against, demonstrating overwhelming support for the transaction by all stakeholders.
The transaction represents an accretive and optimal outcome for all the parties, providing a satisfactory solution to the issues surrounding both the company’s capital structure and the uncertain legal position of the sukuk.
Patrick Allman-Ward, CEO of Dana Gas, commented: “We are delighted to have received the approval of all key stakeholders to complete the restructuring of our sukuk al-Mudarabah, and to have had overwhelming support from both shareholders and certificate holders. The level of support underlines the consensual nature of the restructuring and the continued support of both sukuk holders and shareholders of the company is testimony to our financial strength and our exciting future growth prospects.”
“Dana Gas is well placed to deliver value for all stakeholders. We are making good progress in the Kurdistan region of Iraq and are working hard to deliver a significant expansion programme there this year. To this end, we expect drilling to commence soon in both our world-class fields and debottlenecking work is underway to expand our output by 20% in the fourth quarter 2018. In Egypt, we recently received a payment of $40mn from the government, which will allow us to proceed with drilling further onshore wells to increase production to plant capacity.”
