Sona Petroleum proposes wind up, in talks with liquidators

Winding-up process to begin following acquisition by the end of the month

PUBLISHED : Thursday, 14 July, 2016, 3:51pm
UPDATED : Thursday, 14 July, 2016, 3:55pm

Sona Petroleum Bhd's board proposed to wind up the company, ahead of its qualifying acquisition deadline end of this month. The liquidation follows termination of Sona's planned purchase of Australia's Stag Oilfield for US$25 million (about RM99 million).
In a statement to Bursa Malaysia today, Sona said it was discussing with potential liquidators on the special purpose acquisition company's winding up. Sona said
the permitted timeframe to complete its qualifying acquisition would expire on July 29 this year.

"As such, the company is currently in discussions with several potential liquidators in relation to the proposal to wind up the company. The board will evaluate the liquidators together with their proposals and will announce further details on the winding-up, after the board has decided on the matter.

"In accordance with the memorandum and articles of association of the company, the board intends to commence the winding-up process as soon as possible, after the expiry of the permitted timeframe on 29 July 2016," Sona said.

Sona's planned Stag Oilfield acquistion failed, after sellers terminated the sale and purchase agreement (SPA) last month. On June 2 this year, Sona said the SPA was terminated after certain conditions in the SPA were not met.

At Bursa Malaysia today, Sona shares settled unchanged at 46 sen at 12:30 pm, local time for a market value of RM648.93 million (US$164.48 million). The stock saw 749,000 shares traded.

In a separate statement to the exchange, Sona said it would defend itself against a claim that it owed Law Asia Pte Ltd US$47,299.12 for work done involving a potential qualifying acquisition.

Sona said it received the writ and statement of claim for the amount, from law firm Messrs Shearn Delamore & Co, which is representing Law Asia.

According to Sona, Law Asia filed the writ and statement of claim at the Kuala Lumpur Sessions Court.

Sona said: "The claim is for the sum of US$47,299.12, being fees for alleged work done in relation to a potential acquisition of a qualifying asset, which Sona Petroleum was considering at that time, but did not materialise, due and owing as at 15 May 2015, together with interest and cost."

"The board is of the view that the claim has no substance and will defend the claim as appropriate," Sona said.

See the original story on The Edge Markets