The acquisition will cost between $270 million and $330 million via four instalments.
The upfront payment to APA is set to be $210 million followed by a series of deferred payments to APA. The first post-completion payment of $40 million within 12 months completion, the date being on which the ownership of OGPP transfers from APA to Cooper Energy.
A second post-completion payment of between $20 million and $40 million within 24 months of completion must also be met.
Lastly, the third post-completion payment of up to $40 million will be acquired by APA within 36 months of completion.
The final amounts of the second and third post-completion payments are subject to post completion plant performance and as such will be calculated once APA ceases operating the OGPP.
Currently, the book value of the OGPP is estimated to be $236 million. The proceeds of the sale are expected to exceed the current book value plus the remaining forecast capital expenditure of the OGPP.
Financial impacts of the sale for the year ending 30 June 2022 will be determined as part of APA’s end of year processes. Additionally, proceeds will be used to support the further funding of APA’s organic growth pipeline but also be used to repay APA debts where appropriate.
Completion of the transaction is set to occur late July 2022. However, the agreement is conditional on the completion of a minimum capital raising by Cooper Energy within 60 calendar days after signing.
Additionally, the agreement also includes provisions for the transfer of material licences and contracts that are in connection with OGPP.
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