Hibiscus Petroleum's plan to acquire Hydra Energy scrapped

KUALA LUMPUR: Hibiscus Petroleum Bhd’s plan to acquire Australia-based Hydra Energy Holdings Pty Ltd (HEH) has fallen through because the conditions precedents were not fulfilled before the April 30 deadline.

The company told Bursa Malaysia that the conditions precedent included the parties agreeing and entering into a sale and purchase agreement, and the approval of HEH shareholders to proceed with the proposed acquisition.

HEH, which holds or is entitled to the rights to working interests in seven petroleum titles in offshore Western Australia, had confirmed that the non-fulfillment of the conditions precedents in the equity transaction term sheet signed on Nov 9, 2015.

Hibiscus said the breaking fee of US$3.5mil (RM13.9mil) was not payable by it as the approval of HEH shareholders was not obtained.

“Following the termination of the term sheet, the company (Hibiscus) is completely discharged and has no liability or obligation to assume pursuant to the terms and conditions of the term sheet. Nevertheless, Hibiscus Petroleum reserves all other rights accruing to it pursuant to the term sheet,” it said.

Under the all-share deal proposed, HEH would have emerged as Hibiscus Petroleum’s largest shareholder. The purchase price for the acquisition would have been the fair market value of HEH as determined by an independent, competent valuer.