Many multinationals sold their Venezuelan operations at hefty discounts earlier this year - or even gave them away - seeking to escape the nation's soaring inflation and chronic supply shortages.
Six firms, including General Mills (NYSE:GIS) and Harvest Natural Resources (NYSE:HNR), offloaded their operations for as little as half their assessed value, while Clorox (NYSE:CLX) and Kimberly-Clark (NYSE:KMB) chose to abandon their local operations.
Harvest Natural Resources (HNR +74.8%) explodes higher after agreeing to sell all of its interests in Venezuela to CT Energy Holding SRL, an Italian-Venezuelan consortium that had partnered with HNR last year, for nearly $100M in cash and stock.
HNR says it will receive $80M in cash, another $12M to be paid over six months, $4.25M in HNR shares that were owned by CT Energy, and warrants held by CT to buy up to 34M HNR shares.
The deal would leave HNR only with assets in Indonesia and in Gabon, but the company says it will continue to seek opportunities to sell its Gabon assets.