Asia Bionenergy’s HOA to buy O&G transportation entities lapses

by **Cals** Wed 01 Jul 2015, 01:13

Asia Bionenergy’s HOA to buy O&G transportation entities lapses

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By Supriya Surendran / theedgemarkets.com | June 30, 2015 : 11:02 PM MYT

KUALA LUMPUR (June 30): [size=14]Asia Bioenergy Technologies Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) has entered into a heads of agreement (HOA) with Singapore-based Hoe Leong Corp Ltd ([You must be registered and logged in to see this image.] Financial Dashboard) and Reachmont Logistics Sdn Bhd to facilitate the acquisition of oil and gas (O&G) transportation providers — Semua Shipping Sdn Bhd and Semado Maritime Sdn Bhd — for RM168 million has lapsed.

In a filing with Bursa Malaysia today, Asia Bioenergy said that the HOA, entered into on Jan 27, 2015, will not be extended upon its expiration today, and shall be considered expired and lapsed.

If gone through, the HOA would have seen Semua Shipping and Semado Maritime transferred to a special purpose vehicle (SPV), which would be collectively owned by Hoe Leong, Reachmont Logistics and Ebony Ritz Sdn Bhd.

Subsequently, Asia Bioenergy was to acquire the entire equity interest of the SPV by issuing shares to Hoe Leong, Reachmont Logistics and Ebony Ritz in a deal valued at RM168 million.

Semua Shipping and Semado Maritime are in the business of shipping and provision of shipping related services, and each company owns oil tankers and vessels.

Both companies are wholly-owned subsidiaries of Semua International Sdn Bhd, which is an associated company of Sumatec Resources Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) and an investee company of Hoe Leong.

Asia Bioenergy (fundamental: 0.6; valuation: 0.9) shares closed unchanged at seven sen today with a market capitalisation of RM60.67 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

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