KUALA LUMPUR: Sona Petroleum Bhd has scrapped its plan to acquire a 40% stake in UK-listed Salamader Energy plc’s Thai unit Salamander Energy (Bualang Holdings) Ltd for US$281 million (RM912 million).

This leaves the oil and gas (O&G) special purpose acquisition company (SPAC) still without an asset. It has until July 2016 to complete its qualifying acquisition (QA).

If it fails to complete a QA within this time frame, the company will be liquidated and the amount held in the trust account will be distributed back to shareholders.

In a filing with Bursa Malaysia yesterday, Sona Petroleum said it and Salamander intend to mutually terminate the previously announced sale and purchase agreement and other relevant transaction documents in respect to the proposed transaction, which was made in June last year.

This came after Sona Petroleum faced a hindrance subsequent to Ophir Energy plc’s proposed acquisition of Salamander’s entire issued and to-be-issued share capital via several arrangements.

Sona Petroleum’s announcement also comes ahead of the deadline for Ophir’s takeover of Salamander to be registered today. Ophir was reported to have an agreement from 28% of Salamander’s shareholders to accept its offer at the expense of Sona Petroleum’s transaction.

Despite the termination of the deal, Sona Petroleum remains interested in acquiring a stake in the Greater Bualuang area in the Gulf of Thailand and is now planning to revise the transaction with Ophir or Salamander.

“Notwithstanding the above, given its knowledge of the asset, Sona Petroleum remains interested in acquiring a stake in the Greater Bualuang area.

“Sona Petroleum, therefore, intends to approach Ophir or Salamander regarding a revised transaction post their respective shareholder meetings on Feb 6, 2015, based on new terms reflecting prevailing market conditions and level of oil prices,” the company said in the announcement.

Note that the Brent crude oil price has seen a 59% slump since June last year to US$46.50 (RM166.47) per barrel yesterday.

The SPAC, which raised RM550 million in its initial public offering, added that at the same time Sona Petroleum is also considering other alternative qualifying assets opportunities.

Since its debut on the local bourse in July 2013 at 44.5 sen, Sona Petroleum rose 37.08% to 61 sen on May 21, 2014. Its share price has tumbled 31.15% to close at 42 sen yesterday, with a market capitalisation of RM592.5 million.

This article first appeared in The Edge Financial Daily, on January 15, 2015.