Harvest Natural Resources Inc. (HNR) agreed to sell its interest in HNR Energia B.V. to PT Pertamina (Indonesia's national oil company) for after-tax proceeds of $525 million. HNR's current market cap is $280 million, and it has total liabilities of $140 million. Below is the press release. Main issue: It's not 100% guaranteed it will go through, but Indonesia's government is sympathetic to the Chavez government, so it's a better-than-average probability. I attached the press release below. Not must else to discuss — pretty cut and dry.
HOUSTON, June 21, 2012 /PRNewswire/ --
The Buyer will purchase Harvest's 32 percent interest in
The closing of the transaction is subject to, among other things, approval by the Government of the
James A. Edmiston, President and CEO of Harvest, said, "The signing of the SPA represents a significant step forward in the strategic alternatives initiative we began in 2010 and clearly validates the potential of Petrodelta's business and Harvest's twenty year partnership with PDVSA in Venezuela."
Edmiston continued, "This transaction will not only provide Harvest and its shareholders with numerous options for the future, but will also provide Petrodelta and PDVSA with a strong, well-financed international partner capable of contributing to Petrodelta's future growth."