Federal issues shares to pay for rig
Monday, November 4 2013 - 12:29 PM WIB
SGX-listed Federal International (2000) Ltd will issue ordinary shares on a price of S$0.10 per share to raise some funds for the acquisition of 1,000 HP N-85 land drilling rig from PT Geo Link Nusantara.
The firm said in a statement on Monday it is expected to raise US$2,689,031 (which will be converted based on the US$:S$ exchange rate on the completion date of the agreement) from the shares issue.
The announcement was made following its announcements September and October that its wholly-owned subsidiary, PT Federal International, had signed a conditional sale and purchase agreement with Geo Link to acquire a 1,000 HP Brewster N-85 land drilling rig for a purchase consideration of US$10,369,031.
The rig is currently leased by Geo Link to a third party for drilling assignments in Indonesia, under a lease agreement that will expire in January 2014, the company said
Editing by Johannes Simbolon