Jho Low’s Jynwel Capital, Abu Dhabi’s Cespa eye Salamander Energy (Update1)

KUALA LUMPUR: UK-listed Salamander Energy plc has confirmed it has received a takeover proposal from a consortium led by Compañía Española de Petróleos (CEPSA) and Jho Low’s Jynwel Capital.

Salamander Energy said in a statement on its website late Monday that it had also received a conditional proposal from Ophir Energy plc over a potential offer for the company.

Salamander Energy said the board has not received the detail of the CEPSA Consortium’s proposal or confirmation that any offer will be forthcoming.

“The proposals from Ophir and the CEPSA Consortium are subject to a number of conditions, including due diligence and the receipt of a unanimous recommendation from the board of Salamander.

“The company is currently in discussions with both Ophir and the CEPSA consortium in relation to their respective proposals. However, there can be no certainty that any offer will be forthcoming, or as to the terms of any such offer.

“Accordingly, shareholders are advised to take no action at this time,” it said.

Jynwel Capital has been in the spotlight over the past week over its chief executive officer Jho Low’s role in the joint bid to buy Reebok from Adidas for about €1.7bil (US$2.5bil).

According to its website, the international private equity investment and advisory firm works with leading sovereign wealth funds, major international investment companies and large family enterprises.

Jynwel Capital is teaming up with investors from Hong Kong and Abu Dhabi to buy Reebok from Adidas.

Jynwel Capital and funds affiliated with the government of Abu Dhabi planned to send a letter to Adidas directors imminently, offering to buy its Reebok business for about €1.7bil (US$2.5bil).

Low is best known for his role in setting up Terengganu Investment Authority in 2009 which has been renamed 1MDB now. He was an advisor to TIA. 

However Low has in the past one year distanced himself from 1MDB, a government investment fund, that has drawn a lot of attention.

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.

“Subject to the outcome of the ongoing discussions described above, the board continues to believe that completion of the Sona transaction is in the best interests of shareholders.

“Contrary to remarks in the press, the Sona transaction remains on track for completion before the end of 2014, in keeping with the timetable and strategy previously outlined. 

“The US$280mil of proceeds from the Sona transaction would strengthen Salamander’s balance sheet and would place the company in a strong position to benefit from opportunities arising from the current market conditions,” it said.