Managem board approves $45.2mn purchase of Sound's Moroccan subsidiary

Moroccan mining company Managem’s board has approved a deal to buy London-listed Sound Energy’s wholly-owned subsidiary, Sound Energy Morocco East, for $45.2mn, as announced by Sound on July 16.

In June, Sound signed a binding sale and purchase agreement (SPA) for the partial divestment of its Moroccan assets to Managem by disposing of the entire issued share capital of Sound Energy Morocco East.

Sound Energy has received confirmation of the approval of Managem's board of directors for the transaction, satisfying one of the conditions precedent to the SPA, the company stated. The transaction remains conditional upon fulfilling the remaining conditions precedent to the SPA.

“We are working to complete all remaining conditions precedent to the SPA in the near term. Meanwhile, a transition plan is being executed with the Managem team to ensure a smooth handover,” Sound’s executive chairman, Graham Lyon, said.

Following the deal, Sound Energy will hold a 20% interest in the Tendrara production concession and 27.5% working interests in both the Grand Tendrara exploration concession and the Anoual exploration permit. Managem will own 55% of Tendrara, 47.5% of Grand Tendrara, and 47.5% of Anoual.

With this acquisition, Managem expands its activities into the upstream exploitation of natural gas in Morocco. Located in the Eastern Province of Morocco, the gas assets portfolio covers an area of approximately 23,000 km².