KUALA LUMPUR (June 1): Hibiscus Petroleum Bhd's proposed acquisition of Australia-based Talisman Resources Pty Limited, which includes a 25% stake in the Kitan producing oil field, for RM66.2 million (US$18 million), has fallen through.

In a statement to Bursa Malaysia, the former special purpose acquisition company turned oil and gas exploration and production company said the conditions precedent under the deal have not been “fully satisfied” by the cut-off date of May 31, 2015.

Hibiscus’ (fundamental: 1.65; valuation: 0.3) wholly-owned subsidiary Timor Hibiscus Limited has informed the seller Talisman Oil & Gas (Australia) Pty Limited (Talisman Australia), via a written notice, that the conditions precedent could not be fulfilled.

A two business days’ notice was also issued to Talisman Australia to terminate the share sale agreement (SSA), it added.

On June 23 last year, Timor Hibiscus had entered into an SSA with Talisman Australia to purchase the entire equity interest in Talisman Resources at the said price.

Talisman Resources holds a 25% stake in the Kitan producing oilfield, off the coast of Australia. It was discovered in 2008 and started production in 2011, according to Hibiscus' announcement then.

Prior to the announcement that the SSA will be terminated, shares of Hibiscus were suspended for trading from 9am today. Separately, it announced that trading in its shares will resume tomorrow.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)