Pan Andean Resources MD Horgan buys further 170,000 shares in company

Pan Andean Resources PLC  (AIM: PRE) said it was notified that managing director David Horgan acquired 170,000 ordinary shares in the company at a price of 15.5 pence each and now holds 3,735,000 shares, or 2.93 percent of the capital.

Pan Andean last month outlined details of the planned demerger of its North American and Bolivian operations, and the Petrominerales (TSX: PMG) acquisition of its Colombian and Peruvian assets. The proposals received overwhelming support from shareholders at a general meeting earlier this week.

Petrominerales initially made the £0.15 per share cash-offer for the company’s Colombian and Peruvian assets on 9 December 2009, a price considered fair by Pan Andean.

Pan Andean will establish a new company named Hydrocarbon Exploration, which will own the North American and Bolivian assets and liabilities. Existing shareholders will receive one share in Hydrocarbon for every Pan Andean share held. The Hydrocarbon shares are deemed to have a value of £0.025p each, based on the Pan Andean directors’ valuation of the North American and Bolivian operations.

“Hydrocarbon Exploration gives shareholders a stake in the existing Pan Andean interests in Bolivia and the United States. These interests have been valued at £0.025 per Pan Andean share, which reflects the political and legal uncertainties surrounding the activities”, chairman John Teeling said last month.

The total implied £0.175 per share valuation represents a premium of approximately 40% from Pan Andean’s closing share price on 8 December.

In December, the company said Hydrocarbon Exploration will initially be an unlisted company, but that it anticipated re-listing the business in due course.

http://www.proactiveinvestors.com.au/companies/news/5976/pan-andean-resources-md-horgan-buys-further-170000-shares-in-company-5976.html