Mirach disposes remaining interests in PTKE and PTUW

By Ruli Setiawan

SGX-listed Mirach Energy Limited said that it has disposed of its remaining interests in associate companies PT Kamundan Energy (PTKE) and PT Petroenergy Utama Wiriagar (PTUW).

In July 2011, CPHL (HK) Limited, the wholly owned subsidiary of the Company entered into a Conditional Sales and Purchase Agreement with Permanent Rich Energy to dispose of its 8.4 percent and 10.0 percent interests in PTKE and PTUW respectively and thereby ceased to have management influence on the two associates.

However, pursuant to the terms of the Conditional Sales and Purchase Agreement, the interests were transferred back to CPHL (HK) in September 2012 when Permanent Rich Energy failed to complete its obligations and commitments as set out in the Conditional Sale and Purchase agreement.

Following that, CPHL (HK) decided to dispose all its interests in PTKE and PTUW to reduce further capital expenditure risks.

The initial investments in both associate costs have been recovered from the initial payment from Permanent Rich Energy.

The net asset value of the disposal of PTKE and PTUW is US$319,000 and US$269,000, which in aggregate represented less than 2 percent of the net asset value of the Group.

There is no profit attributable to the company from the disposal of the associate companies.

The value of the consideration of PT Kamundan Energy is US$1.00 and the value of the consideration for PT Petroenergy Utama Wiriagar is US$1.00, which each represented less than 1 percent of the market capitalisation respectively.

Editing by Benget Besalicto Tnb