KUALA LUMPUR (Jan 14): Sona Petroleum Bhd (fundamental score 0.60, valuation score 0.00) will scrap plans to buy two upstream oil and gas (O&G) assets in Thailand for US$281.2 million (RM1.01b) from UK-listed Salamander Energy plc following a rival offer.

Sona and Salamander intends to mutually terminate the previously-announced sale and purchase agreement (SPA) for a stake in the B8/38 and G4/50 concessions in Bualuang, according to Sona's statement to Bursa Malaysia today.

The termination follows UK-listed Ophir Energy plc's proposal to acquire Salamander via a share swap. Under the exercise, Salamander shareholders will be entitled 0.6 Ophir share for one Salamander unit held.
 
Despite the SPA termination, Sona said it was still eyeing potential deals with Ophir and Salamander for a stake in the Bualuang O&G assets.

"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 Energy Plc or Salamander regarding a revised transaction, post their respective shareholder meetings on 6 February 2015, based on new terms reflecting prevailing market conditions and level of oil prices," Sona said.

Sona, a special purpose acquisition vehicle, also said it was considering alternative qualifying assets opportunities.

The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. A score of 0 means weak fundamentals and a score of 3 means strong fundamentals.

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