Sona buys Salamander’s Thailand O&G assets for US$281m (RM895m)

by **Cals** Tue 22 Jul 2014, 01:26

Business & Markets 2014

Written by Chong Jin Hun of theedgemalaysia.com

Monday, 21 July 2014 11:05

KUALA LUMPUR (July 21): Sona Petroleum Bhd is buying a 40% stake in two Thailand-based marine oil and gas concessions owned by the UK-listed Salamander Energy Plc for US$281.2 million (RM895.2 million) cash.

In a statement to Bursa Malaysia today, Sona said it had signed the sale and purchase agreement with Salamander for the proposed acquisition of a 40% stake in Salamander Energy (Bualuang) Ltd, which owns the B8/38 and G4/50 concessions in the Gulf of Thailand.

Sona said the transaction was intended to be the special purpose acquisition company's (SPAc) qualifying acquisition. A qualifying acquisition represents an SPAC's initial asset purchase following its listing.

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

Sona plans to finance the acquisition with its listing proceeds and bank loans. Sona said the purchase was expected to contribute positively to its earnings for current financial year ending December 31, 2014.

This is because B8/38, is already producing hydrocarbon resources, and generating income. G4/50 is still in the exploration stage.

Sona said the acquisition was due for completion in the fourth quarter of this year.

The SPA followed a heads of agreement last month (June) between Sona and Salamander on the planned acquisition of a 40% stake in Salamander Energy (Bualuang).

Today, trading of Sona shares was suspended between 9am and 10am for the SPA announcement.