DNeX raises stake in Ping Petroleum to 90% in RM314mil deal

KUALA LUMPUR: Dagang Nexchange Bhd (DNeX) said it will pay RM314mil (US$78mil) for an additional 60% stake in Ping Petroleum Ltd, raising its stake in the oil and gas company to 90%.

The company today entered into a share sale and purchase agreement with a group of vendors to acquire the stake for a combination of US$40mil cash and the issuance of 360 million new shares.

"This transaction supports DNeX’s strategy to further establish its presence in the upstream Oil and Gas business, which can be progressively scaled up over time,” said group managing director Datuk Sri Syed Zainal Abidin Syed Mohamed Tahir said in a statement today.

He said Ping has proven to be a strategic fit with DNeX’s energy division and has contributed positively to the Group’s earnings over the past few years. “The key management team of Ping have deep O&G sector experience and will continue to remain at the helm of Ping," Syed Zainal said.

"We are leveraging on their extensive expertise and business acumen in brownfield assets turnaround, with the objective of building an international portfolio of cash-generating assets,” he added.