Highlight Sona to buy stake in Salamander's Thailand oil and gas assets for RM904m

by **Cals** Thu 05 Jun 2014, 20:17

Highlight Sona to buy stake in Salamander's Thailand oil and gas assets for RM904m

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Thursday, 05 June 2014 14:13

KUALA LUMPUR (June 5): Sona Petroleum Bhd plans to buy a 40% stake in UK-listed Salamander Energy Plc's marine oil and gas (O&G) fields in Thailand for US$280 million (RM903.64 million) cash.

In a statement to Bursa Malaysia today, Sona said it had signed a heads of agreement (HOA) with Salamander for the purchase of a 40% stake in the latter's unit Salamander Energy (Bualuang) Ltd in Thailand.

Salamander Energy (Bualuang) owns two O&G fields within the Gulf of Thailand, namely, the B8/38 and G4/50 concessions. Sona said B8/38 has been producing hydrocarbon resources since 2008.

Today, Sona said the HOA was expected to lead to a legally-binding sale and purchase agreement between the firm and Salamander before this June 26.

Sona said the qualifying acquisition would give the firm a "balanced portfolio of production, development and exploration assets in Thailand."

According to Sona, the acquisition was in tandem with its plan to become an independent upstream O&G firm.

Sona said the purchase of a stake in Salamander Energy (Bualuang) Ltd would result in the former having effective 40% stakes each in the B8/38 and G4/50 concessions.

Ownership of these stakes will see Sona having joint control over strategic and financial decision making with regards to operations in the O&G fields.

Sona said it would finance the acquisition with its initial public offering proceeds, and bank loans.

BNP Paribas and CIMB Investment Bank Bhd are advising Sona on the corporate exercise.