Indonesia’s national oil company PT Pertamina acquires Harvest’s Venezuelan assets

HNR Energia BV, a wholly owned subsidiary of US oil exploration company Harvest Natural Resources Inc (NYSE: HNR), has entered into a definitive share purchase agreement (SPA) that will see Indonesia’s national oil company PT Pertamina (Persero) pay USD725m (EUR578m) in cash for Harvest’s Venezuelan assets.

Under the terms of the transaction, PT Pertamina will acquire the 32% stake held by Harvest in Petrodelta SA through buying HNR Energia’s 80% holding in Harvest-Vinccler Dutch Holding BV. Texas-based Harvest said it expected the deal to produce net gains of about USD525m after transaction costs and taxes are deducted.

One closing condition is the receipt of approvals from the governments of Venezuela and Indonesia. The SPA can be terminated by either side in case that all closing conditions have not been met by 21 March 2013.

Harvest’s president and CEO James A. Edmiston described the entry into the SPA as a major step towards completing the execution of the strategic alternatives initiative Harvest launched in 2010. The deal is testament to Petrodelta’s potential and underscores the success achieved by Harvest and Petrleos de Venezuela SA (PDVSA) during their 20-year partnership.

Edmiston went on to add that the transaction would provide numerous future options for Harvest and its shareholders. Furthermore, it will give Petrodelta and PDVSA an international partner with the strength and financial means to ensure Petrodelta’s future success.

French Rexel boosts US presence with €300m deal to acquire Platt

French electrical supplies distributor Rexel SA (EPA:RXL) on Wednesday said it had agreed to take over US sector player Platt Electric Supply Inc for an enterprise value of some EUR300m (USD382m), in line with strategy to boost market share in its key markets.

The deal will enhance Rexel presence in the US and increase to over 10% its share of the key market in western US which is expected to register a faster growth that the overall US sector, the buyer said.

The addition is expected to contribute to the buyer’s earnings by the end of next year.

Rexel’s chairman and CEO Rudy PROVOOS sees Platt Electric Supply as a strong strategic and geographic fit for the group’s US operations, he said, adding that the combination would generate substantial value for Rexel and its shareholders.

Platt Electric Supply’s president Jeff Baker will also assume the position of CEO for the company as well as that of vice president of Rexel Inc, a local unit of Rexel SA.

Completion is expected in early July, subject to customary conditions.

Oregon-based Platt Electric Supply operates 111 branches in seven US states and two logistics centres. It had sales of around EUR310m last year when it employed about 1,000. It supplies electrical contractors, industrial facilities and commercial businesses with electrical and energy efficiency products and services.

Rexel has US units Rexel Inc and Gexpro combining nearly 300 branches across the country. The US operations generated more than EUR2.5bn in sales last year.

US-based online trading firms TradeKing and Zecco to merge operations

US online brokerages TradeKing and Zecco said that they had agreed to amalgamate their operations. The firms did not reveal the financial conditions of the transaction.

The combed company will serve some 500,000 client accounts with several billion dollars in client assets, the brokerages said.

As a result of the amalgamation, TradeKing’s clients will be able to use Zecco’s forex trading capabilities and mobile trading applications, while Zecco’s customers will benefit from TradeKing’s options trading tools, educational offerings and customer service, the firms noted.

Raymond James Financial (NYSE:RJF) acted as M&A advisor and Pillsbury Winthrop Shaw Pittman LLP – as legal advisor to Zecco on the deal. In addition, Cooley LLP was legal counsel to TradeKing.

TradeKing was founded in December 2005 and is based in Fort Lauderdale, Florida. The company specialises in online stock and options trading.

Zecco was set up in July 2006 and is based in San Francisco, California. The company offers an online stock, options and forex trading platform.