Reach Energy adjourns EGM on qualifying asset buy

KUALA LUMPUR: Reach Energy Bhd shareholders today voted to adjourn the EGM on the company's qualifying asset (QA) acquisition, claiming they need more time to understand the value of the asset.
"Generally the shareholders felt that it is a good opportunity and they want to support the acquisition, but they just want to be a bit more assured," its managing director and CEO Ir Shahul Hamid Mohd Ismail told reporters after the meeting today, which lasted more than two hours.
"They (shareholders) have given us 30 days to come back with the final decision," he noted.
However, Shahul said the company hopes to hold the meeting before the longstop date (cut-off date) under the sale and purchase agreement, which is on Nov 10, 2016.
The special-purpose acquisition company proposed to pay US$154.89 million (RM640.54 million) for a 60% stake in Palaeontol BV, which is the owner of the onshore oil and gas (O&G) field called Emir-Oil LLP in Kazakhstan.
The company has until Aug 14, 2017 to complete its QA.