UMW Oil & Gas share price continues to fall

PETALING JAYA: UMW Oil & Gas Corp Bhd share price fell one sen to close at 63 sen yesterday after it agreed to a second time extension to complete its due diligence on Icon Offshore Bhd and Orkim Sdn Bhd.
The group’s share price which suffered a sharp fall following the announcement of the deal with Ekuiti Nasional Bhd (Ekuinas) to purchase its stakes in Icon and Orkim, has been on a downtrend after it suffered a sharp fall at the end of February. Prior to the announcement, it was trading at 89 sen.
No reason was given for the time extension. Last month, the parties mutually agreed to extend the due diligence deadline to April 19, 2017.
UMW O&G told the stock exchange yesterday, the cut-off date for the fulfillment or waivers of conditions precedent to the deals with Ekuinas would also be extended by an additional three months to July 19, 2017.
In January this year, the group said it will be acquiring Ekuinas’ 42.3% stake in Icon Offshore at 50 sen apiece or RM248.88 million in all, as well as a 95.5% stake in Orkim at RM12.75 per share or RM472.73 million, to consolidate their oil and gas businesses under UMW O&G.
Upon completion of the deals, Ekuinas would emerge as a 12.6% shareholder in UMW O&G, second only to Permodalan Nasional Bhd.