Tuesday, October 25, 2011

Hibiscus Petroleum buys 35% of Lime Petroleum for US$55m

KUALA LUMPUR: Hibiscus Petroleum Bhd (Hibiscus), has executed two agreements to acquire a 35% equity stake in Lime Petroleum Ltd for a total of US$55 million.

Hibiscus managing director Kenneth Pereira said on Tuesday, Oct 25 the deal comprises of a share subscription agreement and a share purchase agreement.

"Under the share subscription agreement, Hibiscus will subscribe for 76.9 million new shares or 27.2% equity stake in Lime Petroleum for a cash consideration of US$50 million. Hibiscus will also purchase a 7.8% equity stake in Lime Petroleum from the current major shareholder, Rex Oil and Gas Ltd, through a share purchase agreement, for a cash consideration of US$5 million.

Once both agreements are finalised, which are subject to approvals by Hibiscus' shareholders and the Securities Commission, the special purpose acquisition company will hold 35% equity stake in Lime Petroleum, according to Pereira.

He added that Hibiscus was expecting an additional concession to be included into Lime Petroleum, bringing the total concessions under this company to at least four by the end of this year.


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