SINGAPORE (Nov 23): Rex International's indirect wholly owned subsidiary, Rex Caribbean Holdings (RCH), has entered into an investment and shareholder's agreement with West Indian Energy Holding AS (WIEH) and GELCO Energy Inc (GELCO), to merge the aforementioned parties' respective assets in Trinidad into a new entity, Steeldrum Oil Company Inc.

RCH and WIEH will each make a cash contribution of US$1 million ($1.41 million) less net cash (cash less payables and accruals held in the parties' respective subsidiaries at the closing date) into Steeldrum.

The company's effective equity interest in Caribbean Rex Limited after the completion of the merger will be reduced to 36.86%. Caribbean Rex Limited will cease to be a subsidiary of the company but will become an indirect associated company.

Rex International last traded at 12.3 cents on Nov 20.