Harvest, Pluspetrol adjust Venezuelan deal

Harvest Natural Resources Inc., Houston, and Pluspetrol Venezuela SA are discussing a revised structure for the latter’s acquisition of Harvest’s Venezuelan equity affiliate.

Harvest Natural Resources Inc., Houston, and Pluspetrol Venezuela SA are discussing a revised structure for the latter’s acquisition of Harvest’s Venezuelan equity affiliate (OGJ Online, Sept. 11, 2013).

Pluspetrol would acquire Harvest’s 32% interest in the affiliate, Petrodelta SA, by buying HNR Energia BV’s 80% interest in Harvest-Vinccler Dutch Holding BV (HVDH) in two transactions with combined consideration of about $400 million.

In the first transaction, Pluspetrol would buy 29% of HVDH for $125 million. Closing of that deal is expected in December. Net proceeds to Harvest are estimated at $120 million after deductions for transaction expenses and taxes.

Pluspetrol would buy Harvest’s remaining interest in HVDH for $275 million in the second transaction. Closing is expected in the first half of 2014 if the deal receives approval of Harvest directors and the Venezuelan government. Net proceeds to Harvest would be about $200 million.

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