WASHINGTON, D.C. and Tunis, Tunisia, Jan. 16, 2012 /CNW/ - IFC, a member of the World Bank Group, today agreed to invest 9.79 million Canadian dollars in oil producer Candax Energy, helping the company ramp up operations in Tunisia and in turn creating jobs and boosting government revenues in the North African country.
IFC's investment will be used by Candax to increase production at its oil fields in Tunisia's south eastern Medenine governorate, where the company currently employs over 150 people. In addition to financing, IFC is helping Candax implement best practice environmental and social management, including close collaboration with local communities.
"Candax is pleased to welcome IFC as a shareholder and long-term partner," said Benoit Debray, Chairman and Chief Executive Officer of Candax. "The investment by IFC, a sophisticated investor with a successful track record supporting the oil and gas sector in emerging markets, will allow us to continue expanding our program in Tunisia."
In addition to investments in the oil and gas sector, IFC's current strategy in Tunisia focuses on supporting public-private partnerships in infrastructure projects, improving the education system, opening up credit lines to small businesses and investing in job-creating industries such as information technology, manufacturing, agribusiness and mining.
"Our investment in Candax builds on IFC's strategy to support Tunisia's priorities of economic recovery and employment generation", said Lance Crist, IFC Global Head of Oil and Gas. "Responsible companies with strong management teams like Candax are showing that the private sector can play a positive role in the future of Tunisia and the region."
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. We help developing countries achieve sustainable growth by financing investment, providing advisory services to businesses and governments, and mobilizing capital in the international financial markets. In fiscal 2011, amid economic uncertainty across the globe, we helped our clients create jobs, strengthen environmental performance, and contribute to their local communities—all while driving our investments to an all-time high of nearly $19 billion. For more information, visit www.ifc.org.
Legal Disclosure about IFC's Investment
Certain members of Candax's senior management and non-executive directors have also agreed to invest up to an aggregate amount of 11,790,000 Canadian dollars in Candax on substantially the same terms as IFC Private Placement (the Management Private Placement).
The investment of approximately 9,790,000 Canadian dollars in Candax will result in IFC acquiring 178,000,000 units issued by Candax. Candax is expected to issue up to 36,363,636 units in connection with the Management Private Placement. Each unit is composed of one common share and one warrant. Each of the warrants entitles the holder to purchase one common share of Candax at an exercise price of $0.08 Canadian dollars per common share for a period of three years from the date of issuance, subject to Candax's right to accelerate the expiration of the warrants in accordance with their terms.
The issue price per unit is 0.055 Canadian dollars. It is expected that upon completion of the IFC Private Placement and the Management Private Placement (together, the Private Placements), there will be 1,067,929,513 Candax common shares outstanding. The Private Placements are subject to a number of conditions including the requisite approval by holders of Candax common shares at a special meeting of Candax shareholders expected to be held on February 17, 2012. Immediately upon the closing of the Private Placements, it is expected that IFC will directly hold approximately 16.7 percent of the outstanding share capital of Candax and approximately 28.6 percent of Candax's outstanding share capital assuming the exercise of all of IFC's warrants acquired under this private placement.
The Private Placements are expected to close in February, 2012. IFC is acquiring the units for investment purposes as described above. IFC may, in the future, take such actions in respect of its holdings as IFC deems appropriate in light of the circumstances then existing. Under the subscription agreement entered into between IFC and Candax, IFC will be granted certain pre-emptive rights. To obtain a copy of the report filed by IFC with the Canadian securities regulatory authorities in respect of which this news release relates, please contact Josef Skoldeberg at the phone number or e-mail address referred to above. IFC's headquarters are located at 2121 Pennsylvania Avenue, N.W., Washington, D.C., 20433, U.S.A.
About Candax Energy
Candax is an international energy company with its head office in Toronto and offices in Tunis and Madagascar. The Candax group is engaged in exploration and the production of oil and gas in Tunisia and holds an interest in an exploration permit in Madagascar.
For further information:
Phone: (202) 473-6978
Phone: +20 22 461 4230