Hibiscus Petroleum’s Qualifying Acquisition Receives SC Approval
Kuala Lumpur, 16 February 2012: Hibiscus Petroleum Bhd (“Hibiscus Petroleum”), Malaysia’s first Special Purpose Acquisition Company (“SPAC”) today received the Securities Commission's approval for its qualifying acquisition.
In October last year, Hibiscus Petroleum announced that as its qualifying acquisition, the Company would be acquiring a 35% equity interest in Lime Petroleum Plc (“Lime”) for a total purchase consideration of USD55 million. Lime has majority interests in companies with concession rights in three offshore oil and gas exploration assets located in the United Arab Emirates and Oman.
Out of the total consideration, USD50 million will be injected into Lime to primarily fund Lime’s activities whilst the balance of USD5 million is for the purchase of existing shares in Lime.
Hibiscus Petroleum’s Managing Director, Dr Kenneth Pereira, said, "to complete the qualifying acquisition, we require specific approvals from the Securities Commission and our shareholders. Today, we are very pleased to announce that Hibiscus Petroleum has received the approval of the Securities Commission for the qualifying acquisition. In accordance with the SPAC guidelines, Hibiscus Petroleum will convene an Extraordinary General Meeting (“EGM”) to seek shareholders’ approval for the qualifying acquisition as soon as we receive clearance from the Securities Commission to issue the finalized version of the EGM circular.”
Dr Kenneth Pereira added, “This is a major milestone for the Company. We hope that the shareholders will also approve the Lime transaction so that the Company can look towards the future with more certainty.”
Since the announcement of the Lime transaction, Hibiscus Petroleum's shares and warrants prices have increased by 173% and 255%, respectively. The shares closed at RM 1.84 while the Company's warrants closed at RM 1.03 today.
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