IPO Sona Petroleum receives several acquisition proposals

IPO Sona Petroleum receives several acquisition proposals
Business & Markets 2013
Written by Jason Tan of theedgemalaysia.com
Tuesday, 30 July 2013 11:35

KUALA LUMPUR (July 30): Sona Petroleum Bhd said today it has received a number of proposals for possible acquisition targets.

“We have received quite a number of proposals from the regions of interests,” managing director Datuk Seri Hadian Hashim told a press conference today at the listing ceremony of Sona.

“The team will have to go through the proposals when the listing is over,” he said.

Sona Petroleum -- a special purpose acquisition company (SPAC) which acquires assets in the exploration and production phases of the oil and gas value chain – has said it is setting its sights to acquire assets in the Middle East, Africa and Southeast Asia.

Hadian did not offer more details but said Sona is also likely to make ventures into acquisitions of exploration and development assets when “there is profitability and when the opportunities arise”.

According to a press statement released by the company today, Sona will set aside 90% of the proceeds raised from the IPO to complete its acquisitions.

SPACs in Malaysia have a permitted timeframe of 36 months from the date of listing to do so.

The remaining of the IPO proceeds will be utilised for working capital within 36 months from the listing and listing expenses, it added.

Sona has raised a total of RM550 million from its IPO exercise.