Rex International has increased its interest in subsidiary Lime Petroleum to 89.74% from 80.14%, via a share swap agreement.
The group signed the agreement with Monarch Marine Holding, which saw the acquisition of 9.6% of shares of Lime Petroleum from Monarch, in consideration of Rex Technology Investments transferring 40% of shares in Xer Tech (Xer Sweden) to Monarch.
Lime Petroleum is a joint venture company incorporated under the laws of Norway and is the holding company of Rex Group’s Norway, Germany and West African subsidiaries.
Xer Sweden is wholly-owned by Rex Technology, which is a subsidiary of Rex International, that is in the business of developing its own durable, long-range multirotor drones.
Rex says that the transaction will result in the group taking more control of Lime Petroleum, which will allow them to focus its efforts and resources on growing its core energy business, and have more flexibility in structuring and administering future financing for Lime Petroleum.
Rex says that the consideration that Monarch will receive pursuant to the transaction was arrived against the backdrop of more and more banks shying away from financing fossil fuel companies.
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There are no cash proceeds from the transaction.
Shares in Rex International closed flat at 17.3 cents on Oct 1.
