Thursday 28 Mar 2024
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KUALA LUMPUR: Sona Petroleum Bhd said it is still confident of meeting its July 30, 2016, deadline to make a qualifying acquisition (QA), following its failed move to acquire Salamander Energy (Bualuang Holdings) Ltd (SEBG).

Although the deadline only gives the special purpose acquisition company a little more than a year to make its QA — failing which it will be liquidated and the amount held in its trust account will be returned to shareholders — Sona chairman Andre van Strijp said the company still has enough time to properly evaluate its options. 

“It’s not necessary to make the QA now because we still have time to analyse and check the best QA. We are aware of the time needed to obtain the approvals, we have experience in that. We still have sufficient time,” he said.

Sona managing director Datuk Seri Hadian Hashim said it is still focusing on the Southeast Asian, Middle Eastern and African regions, and aims to acquire low risk small- to medium-sized exploration and production assets.

“There are shortlisted candidates, with varying degrees of maturity. Due diligence works are being carried out. We are confident that we would be able to do the QA within the time frame specified,” he told a press conference after the company’s annual general meeting yesterday.

He added that Sona is looking at onshore and shallow water projects, and is not looking at acquisitions outside the specified regions.

According to its 2014 annual report, the group spent RM17.47 million for QA evaluations, which included SEBG and two other possible QAs.

 Hadian said the latter two QAs are no longer on the table.

To recap, Sona had initiated proceedings to acquire SEBG as its QA, on account of its two concessions in Thailand known as B8/38 and G4/50, which would have resulted in the SPAC owning a 40% participating interest in the concessions.

However, the deal fell through as Salamander Energy plc, the holding company of SEBG, received a bid from Ophir Energy plc for the acquisition of its entire shareholding, with the offer being conditional upon the termination of Sona’s proposed transaction.

Following that, Sona entered into discussions with Ophir to acquire SEBG but talks were subsequently discontinued in view of the decline in oil prices in the latter half of 2014.

Sona shares closed 1.19% higher at 42.5 sen yesterday, with a market capitalisation of RM592.5 million.

 

This article first appeared in The Edge Financial Daily, on June 25, 2015.

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