Hibiscus Petroluem files suit against Lime Norway

PETALING JAYA: Hibiscus Petroleum Bhd's wholly-owned subsidiary Gulf Hibiscus Limited (GHL) has filed a writ of summons to claim for compensation against Lime Petroleum AS (Lime Norway) and its three directors/officers for financial losses suffered by GHL in connection with the restructuring undertaken by Lime Norway.
The three directors of Lime Norway are Hans Ove Leonard Lidgren, Svein Helge Kjellesvik and Ivar Aarseth. The suit was filed at the Oslo District Court on Oct 11.
"The company and its subsidiaries fully reserve all their rights," Hibiscus said in a filing with the stock exchange.
GHL had in 2016 claimed for US$35 million (RM136.4 million) in compensation from Lime Norway for financial losses suffered by GHL.
To recap, Hibiscus bought a 35% stake in Lime Petroleum Plc (Lime Plc) for US$55 million in 2012 as its maiden acquisition to become a full-fledged listed company from a special-purpose acquisition company.
It was previously reported that Lime Norway had undergone a restructuring exercise that had diluted Lime Plc’s stake in Lime Norway from 73.82% to 3.51%.
Lime Norway is a wholly owned subsidiary of Lime Petroleum Plc, which is jointly controlled by Rex International Holding Ltd (56.4%), Hibiscus (35%) and Schroder & Co Banque SA (8.6%).
The dilution of interest in Lime Norway had partly affected Hibiscus's financial performance, in which Hibiscus reported a widened net loss of RM164.17 million for the second quarter ended Dec 31, 2015 from RM10.66 million a year ago.