Ramba seeks shareholders approval of Lemang PSC divestment

By Ruli Setiawan

SGX-listed Ramba Energy Ltd announced Wednesday it would hold an extraordinary general meeting (EGM) by April 30, 2016 to seek shareholder? approval of the proposed divestment of Lemang production sharing contract (PSC) in Jambi province.

The company said in an update statement that the exact date and time of the EGM will be announced in due course.

Ramba has earlier made an application to the Singapore Stock Exchange for a waiver of shareholders? approval over the proposed transaction, arguing among others that the transaction is a normal course of business and would not cause material change to the company?s core business.

As has been previously reported, Ramba through its 80.4 percent owned subsidiary PT Hexindo Gemilang Jaya had on October 4 of last year entered into an agreement with Mandala Lemang Singapore Pte Ltd, under which Hexindo shall farm-out a 35 percent interest in the Lemang PSC.

Concurrently, Hexindo has also entered into a back-to-back agreement with Eastwin Global Investments Limited, which owns the remaining 49 percent participating interest in the Lemang PSC. Under this back-to-back agreement, Hexindo shall acquire a 15 percent participating interest in the Lemang PSC from Eastwin. As such the net effect of the proposed transaction is that Hexindo will effectively farm-out a 20 percent participating interest, and retain a 31 percent participating interest in Lemang PSC while Eastwin will retain a 34 percent interest.

Editing by Reiner Simanjuntak