Sona Petroleum borrowing US$140m for Salamander purchase

KUALA LUMPUR: Sona Petroleum Bhd is borrowing US$140mil to part finance its proposed purchase of a stake in UK-listed Salamander Energy plc.

It said on Tuesday it had signed a facility agreement with BNP Paribas and RHB Bank (L) Ltd which will be the joint lead arrangers.

“The financing is conditional upon, inter-alia, the approvals of the Securities Commission and the shareholders of Sona Petroleum, for the proposed transaction being obtained,” it said.

StaBiz reported on Tuesday Salamander Energy plc confirmed it has received a takeover proposal from a consortium led by Compañía Española de Petróleos (CEPSA) and Jho Low’s Jynwel Capital.

In the latest development, Salamander Energy also updated its transaction with Sona Petroleum Bhd, which was signed on July 21, 2014.

Under the deal, Sona would acquire an effective 40% working interest in the B8/38 concession (containing the Bualuang oil field) and the surrounding G4/50 concession, both located in the Gulf of Thailand. Salamander expects to receive US$280mil from the sale.

Salamander also confirmed “the Sona transaction remains on track for completion before the end of 2014, in keeping with the timetable and strategy previously outlined”.