Perisai Petroleum claims Emas Offshore Ltd in default, makes US$1 bid for shares in EVLB

PETALING JAYA: Perisai Petroleum Teknologi Bhd's wholly-owned subsidiary Perisai Production Holdings Sdn Bhd (PPHSB), has countered Emas Offshore Ltd's (EOL) US$1 offer for SJR Marine (L) Ltd, with its own US$1 bid for shares in Emas Victoria (L) Bhd (EVLB), alleging that EOL's financial restructuring led to the termination of its share sale agreement with PPHSB and therefore obliged it to sell its interest in EVLB to PPHSB.
In its filing with Bursa Malaysia, Perisai Petroleum said EOL's act of getting in new investors as part of a financial restructuring exercise, which was to substantially deleverage the group’s balance sheet and strengthen its working capital position for the business to continue as a going concern as announced on Aug 31, 2017, constituted a default of its share agreement with PPHSB.
"In light of the default, according to PPHSB’s rights under Clause 14 of the EVLB SHA, PPHSB requires EOL to sell 37.33 million shares held by EOL in EVLB to PPHSB on the 30th day from the date of the termination notice at 10am on Feb 14, 2018 at the price of US$1, which completion shall take place at the registered office of EVLB," Perisai Petroleum said in a stock exchange filing today.
EOL had on Sept 27, 2017 written to Perisai Petroleum stating that due to the lapse of the settlement agreement between the two, Perisai Petroleum is required to comply with the SHA dated Dec 26, 2013, which was terminated by EOL’s notice dated Dec 8, 2016, and obliged to complete the sale of the 51% shares in SJR Marine (49% owned by EOL) to EOL at the stated price of US$1.
EOL claimed that it had effected payment of US$1 to Perisai Petroleum and was awaiting for Perisai Petroleum’s completion documents to be delivered to them.
Prior to that Perisai Petroleum had disputed EOL's termination notice, which it deemed invalid and ineffective.
Perisai Petroleum's share price was up half a sen to 5 sen, with some 73.6 million shares done.