The London-listed miner is “at an advanced stage of negotiation” with lenders for the deal, according to a statement. ENRC’s net debt rose to $5.1 billion at the end of last year from $972 million at the end of 2011, after raising $3 billion of loans to fund capital expenditure and acquisitions, it said.
“We have a firm plan in place to fund our immediate development plans, increase production volumes and reduce debt to a more sustainable level in the medium term,” Chief Executive Officer Felix Vulis said in the statement.
ENRC is in talks with its five main owners on selling shares after posting an $804 million loss for 2012, Vulis said in an interview today. The company wrote down the value of its investments in Kazakhstan, Zambia, South Africa, Russia and the Democratic Republic of Congo by about $1.5 billion.
ENRC shares fell as much as 3.8 percent to 300.9 pence in London and traded at 302.5 pence at 12:14 p.m. in London.
ENRC raised a $500 million revolving credit line last month, which was coordinated by Bank of Tokyo-Mitsubishi UFJ Ltd., according to data compiled by Bloomberg. Under a revolver, money repaid can be borrowed again.
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