Hibiscus gets shareholders nod for Lime acquisition
PETALING JAYA: Hibiscus Petroleum Bhd has received more than 99% approval from its voting shareholders for its 35% acquisition of Lime Petroleum Plc, thus fulfilling the last mandatory condition for the exercise.
With this, Hibiscus is transformed from a special-purpose acquisition company (SPAC) to a fully operating company listed on the Main Market of Bursa Malaysia. Lime owns three oil and gas concessions in two countries in the Middle East.
Hibiscus Petroleum managing director Dr Kenneth Pereira said securing a fourth concession was a condition to completing the deal but this could be waived by Hibiscus if it wished to.
“We do not expect to waive this condition and hope to complete the acquisition within 20 business days of the EGM,” he said.
The meeting was attended by big names including Lionel Lee Chye Tek, the managing director of Singaporelisted Ezra Holdings Ltd, and Roushan Arumugam, the corporate representative of Littleton Holdings Pte Ltd and investment holding company Sri Inderajaya Holdings Sdn Bhd. Roushan is the son of reclusive tycoon Tan Sri A.P. Arumugam.
Both Lee and Roushan are the second and third-largest shareholders of the company. Lee has a 9.57% stake or 40 million shares in Hibiscus. Last month, Arumugam and increased their shareholdings in Hibiscus from 6.4% to 8.8%, or 36.9 million shares.
“As of our initial public offering in July last year, we had six shareholders who collectively held 37% of Hibiscus. Today, they hold 42% of the company,” said Pereira.
The total eligible voting share base of the company amounted to 334.4 million votes. Approval for the Lime acquisition was received from 277 shareholders holding 305.5 million shares, which represented more than 99% of the total votes. Only one shareholder holding 500 shares voted against the acquisition.
Hibiscus bought into Lime for Us$55mil (Rm165mil) in October last year through a subscription for new shares (Us$50mil) and a purchase of existing shares (Us$5mil).
Lime has three oil and gas concessions in the Middle East – Ras Al Khaimah and Sharjah both in the United Arab Emirates (UAE), and the largest one, in terms of acreage, in Oman.
The concession agreements provide for production tenure of at least 20 years.
In its three existing concessions, Lime has also identified four high prospective drilling sites – three in Oman, and one in the UAE.
The seismic studies will be concluded by May and Hibiscus is targeting to begin its drilling programme by the fourth quarter of this year.
Hibiscus closed the day 2 sen lower to RM1.73 on a volume of 924,900 shares. Its warrants closed unchanged at RM1.12 on volume of 3.85 million.