Sterling Green raises £10m for oil & gas move
STERLING Green Group is to move into the oil & gas business after raising £10m and buying a Dublin-based company.
Stockport-based Sterling Green, is acquiring Terra Energy in a largely paper-based deal, which has been funded by an oversubscribed share placing of over 90.9m new shares at a price of 11p each.
Sterling Green Group said the combined business will be renamed Fastnet Oil & Gas and will be valued at around £18m. It will focus on oil & gas opportunities in Ireland and in North and East Africa.
The £10m raised will help the company to develop its pipeline of new projects. Geologist Dr Stephen Staley, a founder of Independent Resources plc, will become CEO of the business and Raglan Capital founder Cathal Friel will be its chairman.
Sterling Green Group’s current chairman, ‘shellmeister’ Michael Edelson, will join Fastnet’s board as a non-executive.
Mr Edelson said: “I am very pleased to announce this significant transaction and change in strategy, which I believe will benefit existing shareholders in Sterling Green, as the proposed enlarged business looks to deliver value through oil and gas exploration utilising Fastnet’s existing portfolio of assets and leveraging the experience and contacts amongst the proposed new directors and advisers.
“I look forward to continuing to serve the business and have great confidence in the future of Fastnet.”
Steve Staley, CEO of Fastnet, said: “The proposition which Fastnet poses to existing shareholders in Sterling Green and new potential shareholders is extremely exciting; through a combination of management’s extensive experience and successful track record and the opportunities presented by our current and future portfolio.”
Sterling Green Group had been a debt management business until December 2011, when its remaining assets were sold to former chief executive Tariq Ali. It had already sold off its debt management back book to Sale-based DRSP for £1m last November.
This morning, the company also announced trading results for the year to March 31 which show that it made a pre-tax loss of £516,000 following the sale of the various business units.
Sterling Green Group plc has been advised on the deal by Shore Capital as NOMAD, lead bookrunner and joint broker. Manchester-based law firm Kuits provided legal advice.
