Giken Sakata completes acquisition of Cepu Sakti Energy
Thursday, September 11 2014 - 05:03 AM WIB
SGX-listed manufacturing company Giken Sakata Ltd announced Wednesday it has finally completed the proposed acquisition of a 51 percent stake in Cepu Sakti Energy Pte Ltd, which has oil and gas assets in Indonesia.
The company also said in a statement it has completed the private placement of 80 million shares, raising S$22.7 million in net proceeds, $15 million of which used to finance the first tranche of the cash consideration in respect of the acquisition.
The remainder $6.25 million was used to fund the shareholder?s loan extended by Giken Sakata Investment Holdings Limited, a wholly-owned subsidiary of the company, to Cepu Sakti Energy Pte. Ltd.
Giken signed on July 11 a placement agreement with Religare Capital Markets (Singapore) Pte Ltd to raise $22.7 million in net proceeds to help finance the planned acquisition of Cepu Sakti.
Giken signed on April 11 of this year an MoU with Java Petral Energy Pte Ltd (JPEL) for the proposed acquisition of 51 percent shares of Cepu Sakti Energy Pte Ltd (CSE), which owns 95 percent of PT Cepu Sakti Energy, for a value of S$48 million.
PT Cepu holds the exclusive rights to cooperate in conducting operations for extracting oil from two oilfields in Tungkul and Trumbul fields in Blora, Central Java, and the Dandangilo, Wonocolo and Ngrayong fields in Bojonegoro, East Java, Indonesia, with a total of 148 oil wells pursuant to certain cooperation agreements. The oil fields are producing a minimum of 300 barrels of crude oil per day.
Editing by Reiner Simanjuntak