Thursday 28 Mar 2024
By
main news image

This article first appeared in The Edge Financial Daily, on February 11, 2016.

 

KUALA LUMPUR: With oil prices dropping below US$30 (RM124) per barrel, Kulim (Malaysia) Bhd has revised downwards the price it is set to pay for a 60% stake in an Indonesian oil and gas player, PT Citra Sarana Energy (CSE).

The company said it will now be paying US$80 million for the stake compared with the original purchase price of US$135 million as announced on Dec 10.

Kulim will be acquiring the stake in CSE through its wholly-owned unit, Kulim Energy Nusantara Sdn Bhd (Kulim Energy), in a move to strengthen its footprint in Indonesia’s expanding oil and gas sector.

The shares will be acquired from the existing shareholders of CSE, namely PT Wisesa Inspirasi Sumatera and PT Inti Energi Sejahtera.

In a filing with Bursa Malaysia yesterday, Kulim said Kulim Energy had entered into a supplemental agreement with CSE on Sunday, in which both parties agreed to lower the acquisition price, in accordance with the drop in oil prices.

Kulim earlier said the acquisition will be funded via internal funds, adding that the proceeds from the divestment of its 48.97%-subsidiary, New Britain Palm Oil Ltd, will be used to partly finance the purchase.

      Print
      Text Size
      Share