KUALA LUMPUR (Jan 30): Handal Energy Bhd had unintentionally named Pelaburan MARA Bhd as the party it previously announced to be potentially investing in its unit via redeemable non-convertible preference shares (RNCPS), noting that the announcement should have read “investors interested in the joint venture (JV)”.
This clarification was provided in a bourse filing on Tuesday, addressing a previous announcement of a potential oil production field development JV to be formed, the formation of which was said to be conditional upon Pelaburan MARA subscribing to RNCPS in the participating Handal Energy unit.
“In this section, the name Pelaburan MARA Bhd (‘PMB’) was inadvertently quoted. It should instead be read as ‘investors interested in the joint venture’,” clarified Handal.
Following the announcement of the proposed JV, Pelaburan MARA said it had not received any proposal from Handal Energy concerning an investment in RNCPS, emphasising that no evaluation or confirmation regarding the RNCPS was conducted.
In response, Handal Energy clarified that it is in discussion with “various potential investment parties” that are interested in utilising Pelaburan MARA’s investment platform for their investments.
“However, at this point, these discussions are not conclusive, and no definitive agreement has been reached with any specific investor,” it added.
Back in Jan 18, Handal Energy announced that its wholly owned unit Handal Energy Floaters Sdn Bhd (HLFSB) had entered into a JV agreement with Kazakhstan-based Hadid Oil & Gas LLP (HAG), establishing a special purpose vehicle for shared involvement in an early oil production field development programme, particularly phase 1 of the Nipineftegas field development plan.
The agreement is subject to numerous conditions precedent, including the execution of an RNCPS agreement between HLFSB and Pelaburan MARA, with Pelaburan MARA subscribing to the RNCPS issued by HLFSB at an issue price to be determined later, based on an issue size of US$5 million (RM23.64 million).
In Tuesday’s bourse filing, Handal Energy also clarified that potential investors and Pelaburan MARA are not in any financial risk related to the JV agreement, adding that other conditions precedent are all necessary approvals and due diligence of “all parties”.
“We remain dedicated to maintaining clear and transparent communication with our stakeholders. Handal Energy continues to explore various opportunities in alignment with our strategic objectives and will keep all relevant parties informed of significant developments in due course,” the company added.
At 3.26pm on Tuesday, shares in Handal Energy were half a sen or 5.56% higher to 9.5 sen, giving the company a market capitalisation of RM30.34 million.