Malaysia : SCM's Approval gained by Reach Energy to Buy Stake in Kazakh O&G Firm.
The approval of the Securities Commission Malaysia (SC) is secured by Reach Energy Berhad, Malaysias fourth and largest special purpose acquisition company (SPAC) for its planned qualifying acquisition of a 60 % stake in Palaeontol B.V. -- a subsidiary of Hong Kong Stock Exchange-listed MIE Holdings Corp.'s (MIEH) unit Palaeontol Cooperatief U.A. which possesses a 100 percent working interest in an onshore block in Mangistau Oblast in southwest Kazakhstan through Emir-Oil LLP.
Emir-Oil possesses oil and gas producing fields, development fields and exploration prospects in the 328.3 square mile (850.3 square kilometer) block, with RPS Energy Consultants Ltd. approximating that the indicative gross proved plus probable (2P) reserves stood at 72.1 million stock tank barrels (MMstb) of oil and 102.4 billion standard cubic feet of gas.
At present, Reach Energy will called for an extraordinary general meeting to get shareholders' authorization for the planned $154.9 million acquisition.
Reach Energy Managing Director Shahul Hamid bin Mohd Ismail said, The proposed acquisition of Emir-Oil in Kazakhstan is an attractive investment as it contains a balanced portfolio of production, development and exploration fields. These fields will bring immediate recurring revenues to the company and contribute positively to its cash flow, particularly with the expected improving oil prices in the medium to long term. We are confident that this acquisition will bring immense value to our shareholders and other stakeholders alike.
Reach Energy simplified that it will take on 60 % of Palaeontol B.V.s outstanding shareholder loans under the acquisition.
It will pay the outstanding amount of the purchase consideration to MIEH for the re-assignment and transfer of 60 percent of the shareholder loans in Palaeontol B.V. (together with its accrued interest), from MIEH to Reach Energy upon completion.
Palaeontol B.V. after the re-assignment will be obliged 60 percent of its outstanding shareholder loans to Reach Energy instead, with the outstanding 40 percent to MIEH. Palaeontol B.V. is obliged to repay such shareholder loans to both Reach Energy and MIEH.
[c] 2016 Al Bawaba (Albawaba.com) Provided by SyndiGate Media Inc. ( Syndigate.info ).
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|Date:||Aug 27, 2016|
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