Geo Energy obtains SGX approval for acquisition of Borneo International shares
Monday, March 21 2016 - 02:06 AM WIB
SGX-listed Geo Energy Resources Limited said it has obtained the required approval from the stock exchange for the acquisition of the remaining 34 percent shares in Borneo International Resources Ltd.
?The company wishes to announce that it has on 18 March 2016 received the approval in-principle of the Singapore Exchange Securities Tradin Limited (SGX-ST) for the Acquisition and the listing and quotation for an aggregate of up to 27,222,222 ordinary shares in the capital of the company (consideration shares),? Geo Energy said in a statement Monday.
?The approval in-principle granted by the SGX-ST for the listing and quotation of the consideration shares is subject to certain conditions, inter alia, compliance with the SGXST?s listing requirements,? it added.
As has been previously reported, Geo Energy entered on December 26, 2015 into conditional sale and purchase agreement with Optimum Source Limited for the acquisition of 68 ordinary shares representing the remaining 34 percent shareholding interest in Borneo not already owned by the company.
The company explained that as part of the consideration payable under the agreement for the acquisition, the following sums remain to be paid in the form of cash, cash equivalents and shares, or such form as both parties may agree:
i. US$ 3.5 million paid by way of ordinary shares of the purchaser, priced at S$0.18 per ordinary share, at a foreign exchange conversion rate of US$1 : S$1.4 after the approval for the listing and quotation of the shares by the Singapore Exchange Securities Trading Limited (the SGX-ST); and
ii. US$ 4.5 million paid by 31 December 2016.
Borneo, through various intermediate holding companies, holds an effective equity interest in Indonesian coal firm PT Sungai Danau Jaya of 98.96 percent. The acquisition enables Geo Energy to collectively own the entirety of this interest.
Editing by Reiner Simanjuntak