Ramba gives Risco more time to complete acquisition of Lemang PSC

By Romel S. Gurky

SGX-listed Ramba Energy Limited said Monday it has agreed to a request from Risco Energy Investments Holding Pte Ltd (REI) for more time to complete due diligence process over the latter?s plan to acquire a minority stake in the Lemang production sharing contract located in Jambi and Riau provinces.

?REI needed additional time to complete its negotiations with Ramba; and Ramba has agreed to extend the three-month exclusivity period by 41 days up to and including 31 January 2015,? Ramba said in a statement.

?If the parties are unable to complete their negotiations by 31 January 2015, the exclusivity period shall expire and Ramba shall, after 31 January 2015, be entitled to approach and negotiate the proposed sale of the 25 percent working interest in the Lemang Block with any other party,? it added.

Ramba on September 21 signed a binding letter of offer with REI for the latter to acquire a 25 percent direct working interest in the Lemang PSC for a total consideration of US$157.5 million.

The two companies have agreed to enter into a three-month exclusivity period during which time REI will complete a due diligence process, while Ramba will secure the necessary regulatory and shareholders approvals for the proposed transaction.

Ramba via its Indonesian subsidiary PT Hexindo Gemilang Jaya holds a 51 percent interest in the Lemang PSC. The company announced in April that it has received interest from various bidders to acquire a minority stake in the PSC.

Editing by Reiner Simanjuntak