Sale of Federal?s stake to Petroflexx falls through
Wednesday, April 27 2016 - 04:12 PM WIB
SGX-listed Federal International (2000) Ltd announced on Wednesday that it has suspended the agreement for the sale of its shares in Federal JWR Energy Pte Ltd (FJWR) to PT Petroflexx Prima Daya (PPD).
On June 3, 2013, the firm announced that it had signed with PPD to sell its 40 percent interest in the issued and fully paid-up ordinary shares in Federal JWR Energy Pte Ltd (FJWR). The sale and purchase agreement was conditional upon the company receiving consideration of US$2,940,588 (the balance consideration) from PPD over a period of 34 months. The payment period ended in March 2016.
The firm said as of the end of the payment period, the company has not received the balance consideration in full. Furthermore, the company and PPD have not agreed to any extension of the payment period.
Pursuant to the terms of the agreement, the agreement is deemed to be terminated due to the failure by PPD to pay the balance consideration to the company during the payment period. Under the terms of the agreement, the company is entitled to retain all payments already received and also, its shares in FJWR.
FJWR?s sole operating activity is the rental of gas and oil production related facilities in Indonesia.
Editing by Johannes Simbolon