Reach Energy’s share price down after scraping private placement

PETALING JAYA: Reach Energy Bhd’s share price fell 3.66% this morning after it aborted its private placement exercise due to current market conditions.

As at 10.50am, Reach Energy’s share price stood at 39.5 sen with 3.02 million shares changing hands. It has a market capitalisation of RM518 million.

Reach Energy said it is challenging for the company to implement the placement at an issue price that is in the best interest of the company and its shareholders, but added that it will explore other fund raising options.

The private placement was to raise up to RM180 million, mainly to settle the remaining purchase sum of the acquisition of 60% equity interest in Palaeontol BV and 60% of the shareholder loans from MIE Holdings Corp for US$154.9 million (RM638.2 million), which was completed on November 25, 2016.