Sound Energy PLC (AIM: SOU) has completed the sale of Sound Energy Meridja Limited to Managem SA, following shareholder approval and satisfaction of the remaining conditions attached to the transaction.
The company received US$57 million in cash, before working-capital adjustments, from the disposal.
Sound Energy intends to use the proceeds to repay all outstanding debt, including its Eurobond liabilities. After settling its balance-sheet obligations, the company expects to retain approximately US$11 million in cash.
Its subsidiary, Arran Energy Holdings Limited, has also relinquished its 27.5% interest in the Anoual Exploration Permit and waived its rights relating to the Grand Tendrara Exploration Permit.
Sound Energy said the strengthened balance sheet will provide greater flexibility to pursue disciplined, cash-generative acquisitions across the renewable energy, hydrocarbons and wider energy-transition sectors.
The company will also continue developing its existing Moroccan businesses, including the Tayra solar power platform and HyMaroc, which is focused on hydrogen and helium exploration.
Chief executive Majid Shafiq said completion of the transaction marked the successful delivery of the strategy announced in May and provided Sound Energy with a platform for its next phase of growth.
He added that the company is already assessing opportunities capable of building a larger, diversified and cash-generative energy business.
