KUALA LUMPUR: Independent oil and gas exploration company, Hibiscus Petroleum Bhd today announced that it has signed a conditional share sale agreement with TotalEnergies Holdings International B.V. to takeover TotalEnergies EP (Brunei) B.V for RM1.2 billion (US$259.4 million).
Hibiscus told Bursa Securities in a filing, its subsidiary, Simpor Hibiscus Sdn Bhd has entered a conditional share purchase agreement (SPA) with TotalEnergies Holdings International B.V. to acquire TotalEnergies Brunei for RM1.2 billion cash.
Upon execution of the SPA, Simpor Hibiscus paid a deposit of RM229.9 million (US$49.0 million) to TotalEnergies Holdings.
TotalEnergies Brunei owns a 37.5 per cent operated interest in Block B Maharajalela Jamalulalam (MLJ) field.
Hibiscus said the proposed acquisition is in line with the growth strategy of the company of acquiring producing assets in the well established regions with an operator ship role.
"This asset, situated near the company's home country, Malaysia, will enable Hibiscus Group to further strengthen its position as a significant independent Exploration & Production (E&P) company in the region," it said.
Hibiscus said ot will fund the purchase through a combination of internally generated funds of the company and its subsidiaries or existing debt or other facilities.
"The group does not intend to propose any equity issuances as a source of funding as the group believes that other available sources of funding are sufficient to fund the purchase consideration," it said in its filing.
The actual breakdown of the source of funding will only be determined later and will depend on, amongst others, the group's cash reserves and future funding requirements," it added.
Trading in its shares are suspended from 9am to 5pm today. It will resume trading on Tuesday, June 18, 2024.
The stock closed at RM2.43 yesterday, valuing the company at RM1.96 billion.
