KUALA LUMPUR (Sept 27): Perisai Petroleum Teknologi Bhd said Emas Offshore Ltd (EOL) has written to the group, stating Perisai is obliged to complete the sale of its 51% equity interest in SJR Marine (J) Ltd at US$1 (RM4.22).
 
According to Perisai’s stock exchange filing, EOL said Perisai is required to comply with the shareholders’ agreement dated Dec 26, 2013 — which was terminated by EOL’s notice dated Dec 8, 2016 — due to the lapsing of the parties’ previous settlement agreement.
 
“EOL claims that it had effected payment of US$1 to Perisai and is awaiting for Perisai’s completion documents to be delivered to them.
 
“The company had already disputed the termination notice by its letter to EOL dated Dec 8, 2016, and maintains that the alleged termination is invalid and ineffective,” said Perisai.
 
In December last year, the two parties had come to a settlement on the dispute over the share sale agreement for the 51% stake, mutually agreeing to a consideration of US$43.03 million for the put option shares to be satisfied via US$20 million cash and the balance US$23.03 million in deferred payments by EOL.
 
The share sale agreement provides for call and put options to the parties over the equity interest held by Perisai in SJR Marine.
 
The call option was granted to EOL and gave it the right to acquire Perisai’s 51% stake in SJR Marine, which had lapsed as it was not exercised within the option period.
 
However, the put option remained active and granted Perisai the right to sell its 51% stake in SJR Marine to EOL.
 
On Dec 8, 2016, Perisai issued a notice stating its intention to exercise the put option, which it said was irrevocably and unconditionally granted by EOL under the agreement, which also set the price of the option shares at US$43.03 million.
 
On the same date, EOL issued a letter notifying it intended to terminate the agreement with Perisai due to occurrence of certain alleged events, which then led to the dispute between both parties.
 
Perisai’s share price fell 0.5 sen or 9.09% to 5 sen today, giving it a market capitalisation of RM63.02 million.