SONA Petroleum Bhd’s top executives will meet their counterparts from Salamander Energy Plc next week to save its nearly RM1 billion deal to buy the British firm’s oil and gas assets offshore Thailand.
Sona’s plan to buy a 40 per cent stake in two oil and gas blocks in the Gulf of Thailand for US$281.5 million (RM942.3 million) looks to be all but over after Salamander on Monday accepted Ophir Energy Plc’s share-swap offer.
Ophir’s offer came with the condition that Salamander cancels its deal with Sona, a special-purpose acquisition company (SPAC) flush with some RM550 million raised from its initial public offering (IPO) about 15 months ago.
It also hinged on Salamander shareholders giving their green light at a yet-to-be-fixed general meeting, during which they would also vote on the Sona deal.
Sona, nevertheless, remains hopeful of concluding the deal, which would mark its first qualifying acquisition (QA) after reportedly failing to buy assets in Indonesia and Australia, among others.
“We will meet up with Salamander next week to discuss the options,” Sona managing director Datuk Seri Hadian Hashim told Business Times yesterday.
“This is a developing situation and we are looking at all possibilities, including conciliatory measures, such as working with Ophir.”
Failure to land the deal would put intense pressure on Sona as SPAC companies must spend the bulk of the monies raised from their IPOs on QAs within three years of listing.
Despite Ophir close to scuttling its plan, Hadian reiterated that Sona remained committed to completing the sale and purchase agreement signed with Salamander on July 18.
He, however, said if the deal were to fall through, Sona had other candidates to consider.
Meanwhile, Sona said in a filing to Bursa Malaysia yesterday it had received the Securities Commission’s approval for the deal.
It said the process to complete the transaction over the last three months had been very challenging, with the well-documented interest from two foreign parties for Salamander.
“Sona notes the recent development announced by Ophir on November 24 with regard to its offer, and remains confident that Sona’s offer and valuation is attractive vis-a-vis all previous offers.
“Sona is confident that proceeding with completion of the agreement is in the best interests of its shareholders and it is now the intention of Sona to post the circular to them to seek their approval,” it added.