Sound Energy PLC (AIM:SOU, OTC:SNEGF), the transition energy company, has agreed to sell its remaining 20% interest in the Tendrara gas development in Morocco to Managem, the Casablanca-listed mining group, in a deal that will leave it with $11 million of cash.
Shares in Sound Energy fell 33% to 3.13p following the announcement
The disposal, which has a headline value of $57 million, is structured through the sale of subsidiary Sound Energy Merijda. It comprises a nominal $1 for the shares plus repayment of shareholder loans advanced to the subsidiary, subject to working capital adjustments. Sound Energy will use the proceeds to repurchase its outstanding €28.8 million 5% senior secured notes ahead of their December 2027 redemption date, eliminating all balance sheet debt.
Assuming the deal completes on 31 July, the company expects to be left with a cash balance of $11 million (£8.2 million). Alongside the disposal, Sound Energy is relinquishing its 27.5% non-operated interest in the Anoual Exploration Permit and waiving any rights in the Grand Tendrara Exploration Permit, marking a full exit from its Moroccan portfolio. The sale requires approval from Sound Energy shareholders, Moroccan regulatory clearances and Managem board approval, with a three-month longstop date from signing.