DNeX raises stake in Ping Petroleum to 90% thesundaily.my - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from thesundaily.my Daily Mail and Mail on Sunday newspapers.
KUALA LUMPUR (Jan 22): Dagang NeXchange Bhd (DNeX) is acquiring an additional 60% of the issued share capital in Ping Petroleum Ltd for US$78 million (RM314.3 million), as the group looks to further strengthen its presence in the upstream oil and gas (O&G) segment.
In a statement, DNeX said it entered into a conditional share sale and purchase agreement with the other shareholders of Ping to acquire the stake, which upon completion will increase its holdings in the latter to 90%.
It said the transaction price for the 60% stake represents a discount of around 40% of the market valuation of Ping’s proved and probable (2P) reserve. The purchase will be satisfied by a combination of US$40.95 million (RM165.0 million) in cash, and the issuance of new ordinary shares in DNeX and new redeemable preference shares in its wholly owned unit DNeX Energy Sdn Bhd, for the remaining US$37.05 million (RM149.3 million).
DNeX strengthens investment in upstream O&G 22 Jan 2021 / 17:53 H.
PETALING JAYA: Dagang NeXchange Bhd (DNeX) has entered into a conditional share sale and purchase agreement (SSPA) with the other shareholders of Ping Petroleum Limited to acquire an additional 60% stake in Ping not owned by DNeX, for US$78.0 million (RM314.3 million).
Based on the SSPA, DNeX may nominate its wholly owned subsidiary DNeX Energy Sdn Bhd to be the transferee and registered holder of those shares.
DNeX currently owns 30% in Ping through DNeX Energy. The proposed acquisition will be satisfied by a combination of US$40.95 million in cash, and the issuance of new shares in DNeX and new redeemable preference shares in DNeX Energy, for the remaining US$37.05 million.