(Bloomberg) -- Sherritt International Corp. is exiting its Cuban operations, including a 50/50 nickel and cobalt joint venture, after a U.S. executive order expanding sanctions on the island nation made its business untenable. The company’s shares plunged over 20 percent on the news.
“After much deliberation, Sherritt has determined that the only way to preserve its ability to do business is by invoking its dissolution rights,” the company said in a statement on May 15.
The Toronto-based company will relinquish its interests in the Moa JV, a partnership with Cuba’s General Nickel Company S.A., as well as its one-third interest in the Energas power generation venture and oil and gas exploration contracts. The dissolution is expected to result in Sherritt becoming the sole owner of the Canada Refinery Corporation in Saskatchewan and GNC taking full ownership of the Moa JV assets in Cuba. Sherritt anticipates an equalization payment from GNC, in addition to approximately $277 million already owed.
The abrupt departure follows the resignation of Sherritt’s Chief Financial Officer, Yasmin Gabriel, and its auditor, Deloitte LLP, which has delayed the filing of its first-quarter financial statements. The company said it expects the Ontario Securities Commission to issue a failure-to-file cease trade order, which would halt trading of its securities in Canada.
This article is for informational purposes only and does not constitute investment advice.
