Hong Kong-listed Sino Union takes over Madagascar oil co for 800 mln hkd |
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Published
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Wed, 10 Jan 2007 05:54
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HONG KONG (XFN-ASIA) - Sino Union Petroleum & Chemical International Ltd said it has agreed to buy for 800 mln hkd the remaining 93 pct stake in does not own in oil exploration company, Madagascar Energy International Ltd (MEIL).In a statement, Sino Union said it will pay for the assets with cash, shares and company issued notes.Sino Union is buying the stake from Golden Nova Holdings Ltd, the holding firm of Sino Union's chairman Hui Chi Ming, who owns 55 pct of Wisdom On Holdings, which is the owner of a 57 pct stake in Sino Union.The company said it paid Golden Nova 100 mln hkd in cash and issued 1.25 bln new shares at 0.24 hkd each, representing 48.7 pct of the company. The shares are worth 300 mln hkd.At the same time it sold to Golden Nova 400 mln hkd worth of notes which may be converted into company shares.If the notes are fully converted, Hui through its companies and associates will own up to 86.6 pct of the company from about 57 pct currently.The deal is subject to shareholders approval.MEIL holds rights to engage in oil and gas exploration at the offshore Madagascar Oilfield block 3113 and an onshore site near the area. It is allowed to operate the fields for at least 25 years with it profit share seen at 45 to 73 pct.MEIL has explored eight wells so far. It is believed, based from exploration data, that the the field has oil reserves of about 1.3 bln tons or about 9.11 bln barrels.(1 usd = 7.8 hkd)leonora.walet@xfn.comlw/km
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