Hibiscus' unit claims RM136m compensation against Lime Petroleum

by **Cals** Tue 05 Apr 2016, 00:40

Hibiscus' unit claims RM136m compensation against Lime Petroleum

By Ahmad Naqib Idris / theedgemarkets.com | April 4, 2016 : 4:31 PM MYT

KUALA LUMPUR (April 4): Hibiscus Petroleum Bhd’s wholly-owned subsidiary Gulf Hibiscus Ltd (GHL) has filed a complaint at the Oslo Conciliation Board to claim compensation against the directors and general manager of Lime Petroleum Norway AS, for financial losses suffered relating to the latter’s restructuring.

In a filing today, the group named Lime Norway directors, Hans Ove Leonard Lidgren and Svein Helge Kjellesvik; and Lime Norway general manager Ivar Aarseth, as defendants.

The claim is for an estimated value of US$35 million (RM136 million) and above.

Hibiscus said the individuals named in the suit were among the "primary perpetrators who contributed to damages suffered by GHL, due to their actions taken to effect a substantial dilution of Lime Plc’s shareholdings interest in Lime Norway, after the restructuring".

“The company and its subsidiaries fully reserve all their rights, and will continue to act accordingly to safeguard their interests,” it said.

To recap, Hibiscus had purchased a 35% equity stake in Lime Plc for US$55 million in 2012, via GHL. Prior to the acquisition, Hibiscus was a special purpose acquisition company (SPAC).

Lime Petroleum had undergone a restructuring exercise, comprising a reduction in share capital, by cancelling 900,000 shares held by Rex International Investments Pte Ltd.

The NOK77.4 million (RM36 million) arising from the cancelling of shares, were paid through a selective capital repayment to Rex, which Hibiscus said gave “Rex an unreasonable benefit at the expense of Lime Plc”.

The share capital of Lime Petroleum was then reduced to NOK2.92 million, from NOK251.12 million, by a reduction in nominal value of its shares. Lime Petroleum then issued 77.4 million new shares to Rex for NOK1 per share, which was satisfied by the capital repayment.

As a result of the exercise, Hibiscus said Rex had acquired an additional 70.3% equity stake, increasing its holdings to 96.5%, from 26.2% previously, without any additional payment to Lime Petroleum.