Asiasons to buy 27.5% of US oil firm for US$171.65m in new share issue
Asiasons Capital Limited said on Tuesday that it will buy 27.5 per cent of Black Elk Energy Offshore Operations LLC, a US-based oil and gas company, for US$171.65 million.
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Angela Tan
17 September 2013
Asiasons Capital Limited said on Tuesday that it will buy 27.5 per cent of Black Elk Energy Offshore Operations LLC, a US-based oil and gas company, for US$171.65 million.
The acquisition will be paid through the issue of about 194.65 million new Asiasons shares at S$1.1948 each, which is at a 10 per cent discount to trades done on September 12, 2013.
Asiacons will buy Class A and Class B units of Black Elk, which is involved in the acquisition, exploitation and development of oil and natural gas properties in the US. It produces about 14,000 barrels of oil per day.
Asiasons will subscribe to about 9.96 million Class B units in Black Elk for about US$50 million. It plans to issue about 56.70 million new Asiasons shares to pay for the stake.
Asiasons will also buyabout 24.23 million of Black Elk Class B units from seller, PPVA Black Elk “Equity” LLC for US$121.65 million. This will be payable through the issue of 137.95 million new Asiasons shares.
Asiasons said the “proposed acquisition would enable the company to participate in the oil and gas resource industry which will bring benefits to the company and enhance long term shareholder value”.