DNex gets shareholders nod to buy additional 60% of Ping Petroleum
KUALA LUMPUR (June 18): Dagang NeXchange Bhd (DNeX) has received the approval from its shareholders to acquire an additional 60% stake in Ping Petroleum Ltd for US$78 million (RM314.3 million).
In a statement today, DNeX said upon completion of the exercise, the company will own a 90% stake in Ping.
"Ping has contributed positively to DNeX’s earnings since it acquired a 30% stake in 2016. With the additional 60% stake in Ping, DNeX will be able to consolidate the financial results from Ping moving forward and have greater control (over) strategies to realise its longer term growth potential," it said.
DNeX group managing director Tan Sri Syed Zainal Abidin Syed Mohamed Tahir said Ping’s focus in the near term will be to unlock its untapped potential and maximise value from its asset portfolio.
"There is an opportunity to further improve Ping’s production output by rejuvenating existing wells to monetise economically attractive reserves in the Anasuria Cluster.
“Moreover, we are also looking into acquiring additional late-cycle producing assets in such target markets as the North Sea, Malaysia and within the region as well,” he said.
The acquisition also allows greater synergies within DNeX’s existing energy businesses, namely OGPC Sdn Bhd, which provides engineering and technical support services for the oil and gas industry.
At the close today, DNeX’s share price remained unchanged at 86 sen, with 58.49 million shares transacted.