Going it alone: Cuba finishes Pebercan buyout.
Cuba coughs up $140m to Pebercan
Canadian independent Pebercan said its Cuban subsidiary, Peberco, received a lump sum payment of $140 million from the Cuban authorities after the country terminated a production sharing agreement.
Pebercan’s board will convene as soon as possible in order to consider the company's future prospects.
The Toronto-listed company announced late last month that Cuban authorities had notified it that they wish to "prematurely terminate" the contract that was struck in 1993 and was due to expire in 2018, according to a Pebercan release.
Pebercan said state-run Cupet will assume all the operator's debts and obligations.
Pebercan’s Canadian partner, Sherritt International reportedly will receive $60 million of the payout.
Contrary to what had previously been announced, the resulting depreciation of assets will be recognized by the Pebercan in its financial statements for last year.