Analysts believe odds are against Best Oracle
> Attempt by CLIQ Energy’s major shareholder to stop liquidation of SPAC is seen as futile
PETALING JAYA: The major shareholder of CLIQ Energy Bhd – Best Oracle Sdn Bhd is looking into the validity of its call for a shareholders meeting to stop the liquidation of the special purpose acquisition company (SPAC), an attempt which analysts opine is futile as the legal process of winding up the company is already under way.
Sources say Best Oracle, which is led by CLIQ Energy managing director and CEO Ahmad Ziyad Elias, is studying whether the shareholders meeting can still be held following the High Court’s order that allowed CLIQ Energy’s petition to wind up the company.
The shareholders meeting is also to seek an extension of time from the Securities Commission (SC) to complete the qualifying acquisition (QA).
When contacted, both interested and non-interested directors of CLIQ Energy declined to comment on queries.
Analysts however opined that although CLIQ Energy’s major shareholder is trying hard to complete the QA, its shareholders are likely to vote against the deal given the lacklustre outlook for the oil and gas special purpose acquisition companies.
They believe the probability of CLIQ Energy obtaining the SC’s nod for the extension of time is also very low.
“The window is closing. Things are very late in the cycle for them to stop the liquidation process. It’s coming to the end already,” Inter-Pacific Research Sdn Bhd head of research Pong Teng Siew told SunBiz.
“Ultimately if shareholders voted against this (resolution), very little can be done. Chances are very low that they will be granted (time extension),” he added.
Hong Leong Investment Bank (HLIB) Research analyst Lim Sin Kiat concurred, saying that there will be not much change in the current situation.
“I think the liquidation will still be on no matter what. Chances are low for them because the High Court has allowed the liquidation process,” he noted.
On Monday, the High Court allowed a petition to wind up CLIQ Energy naming Onn Kien Hoe and Mok Yuen Lok of Crowe Horwath Advisory Sdn Bhd as liquidators. The board of directors of CLIQ Energy also said that they ceased to have any powers and that all queries should be directed to the company.
Several attempts have been made by Best Oracle to prevent the dissolution of CLIQ Energy after the SC returned the company’s submission of oil and gas assets buy in Kazakhstan for US$110 million (RM430 million) last January.