Sona to get shareholders’ consent on Salamander asset acquisition

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KUALA LUMPUR (Nov 25): Sona Petroleum Bhd will seek shareholders’ consent on the acquisition of UK-listed Salamander Energy plc’s Thailand upstream oil and gas (O&G) assets.

In a statement today, Sona said this was subsequent to Malaysia's Securities Commission’s approval for the purchase of the O&G assets.

“Sona is confident that proceeding with completion of the (sale and purchase) agreement is in the best interest of its shareholders, and it is now the intention of Sona to proceed to post the circular to its shareholders, to seek the approval of its shareholders,” special purpose acquisition company, Sona, said.

Sona had on July 18 this year, entered into the sale and purchase agreement with Salamander, for the acquisition of 40% interest in the B8/38 and G4/50 concessions in Thailand.

This will be done via the purchase of equity interest in Salamander Energy (Bualuang Holdings) Ltd, for US$281.5 million (RM941.35 million) cash.

In Sona’s filing to Bursa Malaysia today, it reaffirmed its commitment to complete the acquisition of Thailand assets, despite a rival offer from UK-listed Ophir Energy plc to buy the entire share capital in Salamander.

Sona said it was currently seeking further advice on Ophir’s offer and would engage Salamander, before deciding on the next steps.

It is worth noting that Salamander directors are in favour of Ophir's offer.
According to Salamander's statement yesterday (Monday, Nov 24), its board had recommended shareholders to vote in favour of Ophir’s offer and vote against the asset sale proposal to Sona.