| The conclusion of a shares sale agreement within the TOO Company Profit |
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| Own release | |
| 13.07.2011 | |
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The Management Board of PETROLINVEST S.A. (the "Company") announces that on 12 July 2011 the Company concluded an agreement with TOO AlatauMunaiGaz (the "Buyer"), a company registered in the Republic of Kazakhstan, which obliges itself to sell 50% of shares within the TOO Company Profit ("Profit"), an entity of the PETROLINVEST Group, registered in the Republic of Kazakhstan ("Profit Shares") (the "Agreement"). The Profit Shares sale price was set at USD 8,000,000, and the price will be reduced by 50% of the amounts which the Buyer will provide to Profit in the cases specified in the Agreement. The Management Board of Petrolinvest estimates that the amount of price reduction will not exceed USD 250,000. The parties agreed that the Profit Shares disposal transaction shall be executed after the successful completion of a comprehensive due diligence and upon the receipt of all required approvals. The Company is committed to taking all necessary actions to transfer Profit Shares within 90 days from the date of the conclusion of the Agreement. In addition, the Company undertook to confirm that there are no claims against Profit, which means the obligation to redeem Profit's liabilities against the Company. The conclusion of the Agreement implies the performance of the strategy of concentration on high efficiency investment activities adopted by the Management Board of the Company. The Management Board of the Company estimates that the implementation of the Agreement will reduce the liabilities of PETROLINVEST Group while obtaining a positive result of the proposed transaction (the current book value of the Company's assets for TOO Company Profit investment amounts to USD 5,213 thousand). |