News
Disposal Of 72,000 Shares Of Us Dollars 100.00 Each Representing An Equity Interest Of 30 Per Cent In Gulf Petroleum Company (SUDAN) Limited ("Gulf Petroleum")
BackFeb 25, 2000
| General Announcement Reference No CU-000225-56471 |
| Submitting Merchant Bank | : | Not Applicable |
| Company Name | : | ADVANCE SYNERGY BERHAD |
| Stock Name | : | ASB |
| Date Announced | : | 25/02/2000 |
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| Type | : | Announcement |
| Subject | : | DISPOSAL OF 72,000 SHARES OF US DOLLARS 100.00 EACH REPRESENTING AN EQUITY INTEREST OF 30 PER CENT IN GULF PETROLEUM COMPANY (SUDAN) LIMITED ("Gulf Petroleum") |
Contents :
1. INTRODUCTION
The Board of Directors of Advance Synergy Berhad ("ASB") wishes to announce that Synergy Petroleum Incorporated ("SPI"), a wholly owned subsidiary of ASB, has disposed of its entire equity interest of 30 per cent comprising 72,000 shares of USD100.00 each in Gulf Petroleum to a Sudanese party ("the Party") for a total cash consideration of USD8,200,000.00 (hereinafter referred to as "Disposal").
After having acquired 36,000 shares of USD100.00 representing 15 per cent equity interest in Gulf Petroleum for USD4,100,000.00 from SPI which was satisfied in cash, the Party subsequently acquired the remaining 36,000 shares of USD100.00 representing a further 15 per cent equity interest in Gulf Petroleum from SPI on 25 February 2000 for a cash consideration of USD4,100,000.00. Payment of USD2,100,000.00 has been received.
The Disposal was not subject to any approvals from the authorities.
2. RATIONALE FOR THE DISPOSAL
The Directors of ASB do not foresee Gulf Petroleum making any significant contribution to the Group's earnings in the near future and it is projected that further funding from the shareholders is required before Gulf Petroleum can commence full commercial production. Therefore, the Disposal provides an opportunity for ASB to immediately recover its investment cost in Gulf Petroleum and the sale proceeds will be utilised to fund the working capital requirements of the Group.
3. FINANCIAL EFFECTS
3.1 Issued and Paid-up Share Capital
The Disposal will not have any effect on the issued and paid-up share capital of ASB.
3.2 Earnings and Net Tangible Assets
The Disposal will not have any material effect on the net tangible assets value of the ASB Group for the financial year ending 31 December 2000. However, the Disposal is expected to result in a total loss of approximately RM2.3 million for the two financial years 1999 and 2000.
4. DIRECTORS' AND SUBSTANTIAL STOCKHOLDERS' INTERESTS
No director or substantial stockholder of ASB has any interest, direct or indirect, in the Disposal.
BY ORDER OF THE BOARD
ADVANCE SYNERGY BERHAD
Sng Ngiap Koon
Company Secretary