Published:
Monday July 21, 2014 MYT 12:00:00 AM
Updated: Monday July 21, 2014 MYT 8:08:26 AM
Updated: Monday July 21, 2014 MYT 8:08:26 AM
Sona inks agreement to own Thai oil and gas assets
PETALING JAYA: More than a month
after announcing a heads of agreement (HoA) on its qualifying asset,
Sona Petroleum Bhd has finally inked a definite sale and purchase
agreement (SPA) to buy a 40% stake in the Thai unit of UK-listed
Salamander Energy Plc.
The next step is for the special purpose acquisition company (SPAC) to get the approvals from shareholders and the Securities Commission (SC) before it can graduate as a junior oil and gas (O&G) player.
As announced in June, the acquisition entails Sona buying into three asset classes in the oil and gas space.
They are an ongoing production field, a near-term development asset and an exploration asset in an area called the G4/50 concession.
The producing and near production assets are located in B8/38
concession in the Bualuang field while the exploration blocks are due
for drilling soon.
Sources said the deal was signed last Friday in Amsterdam, the same day Sona sent out invites for an analyst briefing and press conference to be held today.
Sona shares, which had come under selling pressure in early June when the company announced its HoA with Salamader, had appreciated by some 10% since late last week, to close at 53.5 sen on Friday.
Oil and gas executives said it was common practice for global oil and gas deals to be inked in locations like Amsterdam where stamp duties were negligible.
Banking sources said the key aspects of Sona’s SPA were not too different from what was inked in the HoA.
Effectively Sona will be forking out close to RM900mil for a 40% interest in the B8/38 and G4/50 concessions in the Gulf of Thailand.
Half of that will be paid from Sona’s coffers and the other half from a debt facility from BNP Paribas that has already been firmed up.
Sources said two local banks were also keen to participate in the funding of this deal.
It is also understood that the SPA covered extensive explanations over the issue of control over the asset being acquired, which has been a challenge for all SPACs seeking to acquire producing assets.
“The parties are aware of this requirement and have inked out details of their joint management control, detailing how Sona has a strong say in key strategic, financial and operational decisions of the operating company. It is a tight management services agreement,” said a banker familiar with the deal, declining to give more details.
Apart from having a share in the holding company owning the O&G assets, the SC wants the SPACs to have substantial interest in the company running the operations of the assets.
In a note to clients last Friday, a local brokerage attributed a fair value for Sona’s shares of between 80 sen and 84 sen based on discounted cash flows of the company post its qualified acquisition of the Salamander asset.
The first SPAC to graduate as a junior energy and production player is Hibiscus Petroleum Bhd. Its area of focus is mainly in the O&G exploration assets.
The next step is for the special purpose acquisition company (SPAC) to get the approvals from shareholders and the Securities Commission (SC) before it can graduate as a junior oil and gas (O&G) player.
As announced in June, the acquisition entails Sona buying into three asset classes in the oil and gas space.
They are an ongoing production field, a near-term development asset and an exploration asset in an area called the G4/50 concession.
Sources said the deal was signed last Friday in Amsterdam, the same day Sona sent out invites for an analyst briefing and press conference to be held today.
Sona shares, which had come under selling pressure in early June when the company announced its HoA with Salamader, had appreciated by some 10% since late last week, to close at 53.5 sen on Friday.
Oil and gas executives said it was common practice for global oil and gas deals to be inked in locations like Amsterdam where stamp duties were negligible.
Banking sources said the key aspects of Sona’s SPA were not too different from what was inked in the HoA.
Effectively Sona will be forking out close to RM900mil for a 40% interest in the B8/38 and G4/50 concessions in the Gulf of Thailand.
Half of that will be paid from Sona’s coffers and the other half from a debt facility from BNP Paribas that has already been firmed up.
Sources said two local banks were also keen to participate in the funding of this deal.
It is also understood that the SPA covered extensive explanations over the issue of control over the asset being acquired, which has been a challenge for all SPACs seeking to acquire producing assets.
“The parties are aware of this requirement and have inked out details of their joint management control, detailing how Sona has a strong say in key strategic, financial and operational decisions of the operating company. It is a tight management services agreement,” said a banker familiar with the deal, declining to give more details.
Apart from having a share in the holding company owning the O&G assets, the SC wants the SPACs to have substantial interest in the company running the operations of the assets.
In a note to clients last Friday, a local brokerage attributed a fair value for Sona’s shares of between 80 sen and 84 sen based on discounted cash flows of the company post its qualified acquisition of the Salamander asset.
The first SPAC to graduate as a junior energy and production player is Hibiscus Petroleum Bhd. Its area of focus is mainly in the O&G exploration assets.
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