Giken Sakata extends long-stop date for acquisition of Cepu Sakti

By Romel S. gurky

SGX-listed manufacturing company Giken Sakata (S) Ltd announced Wednesday that the long-stop date to meet the conditions required to realize the planned acquisition of Cepu Sakti Energy Pte Ltd has been extended again to September 30 from an earlier schedule of August 31.

The company said that it needed more time to fulfill the conditions including raising the necessary funding via private placement mechanism.

?As the EGM (shareholders meeting) will be held on 22 August 2014, the parties anticipate that additional time is required to complete the placement and the acquisition. As such, the parties have entered into a supplemental agreement dated 20 August 2014 to extend the long-stop date to 30 September 2014 or such other date as the parties may agree in writing. Save for the aforesaid extension of the long-stop date, all the other terms in the SPA (sales and purchase agreement) remain unchanged,? Giken said in a statement.

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. As at the date of this announcement, the oil fields are producing a minimum of 300 barrels of crude oil per day.

Editing by Reiner Simanjuntak