Singapore-listed GSS Energy announced that the company has acquired 46.32 per cent shares of PT Cepu Sakti Energy (CSE) from its joint venture partner Java Petral Energy Pte Ltd (JPEL). The purchase raised GSS Energy’s stakes in CSE to 95 per cent.
The remaining 5 per cent of Cepu Sakti Energy’s shares are equally owned by businessmen Muhammad Saleh and Ario Dkoko Damar, who are also shareholders of JPEL.
The deal is part of an agreement to adjust the purchase consideration under the Sales and Purchase Agreement dated 31 May 2014. The Settlement Agreement was entered into due to the termination of the agreement between PT CSE and Koperasi Unit Desa Sumber Pangan (KUD Sumber Pangan) dated 24 July 2015 for the management of oil wells at Dandangilo-Wonocolo field in East Java.
GSS has taken a one-off impairment provision of $32.9 million resulting from the termination of agreement between its subsidiary CSE and the Village Cooperative KUD Sumber Pangan.
Under the deal (with JPEL), GSS Energy would continue to, through its subsidiary CSE, operate the Tungkul, Trembul, Gabus and Kawenangan oil fields in East Java.
In addition, its joint venture partner, JPEL has agreed to a cancellation of the 76 million consideration shares that had been previously issued to it on 10 September 2014 as part of the purchase consideration.
GSS Energy also will not be required to pay JPEL the second tranche of the cash consideration, being the sum of S$10.2 million, that is part of the purchase consideration agreed on 1 June 2014.
The other point of the deal is that GSS Energy shall acquire JPEL’s remaining 46.32 per cent in the issued and paid-up capital of CSE for a cash consideration of S$1.00, thus increasing its total stake in CSE to 100 per cent.
The loans extended by GSS Energy and by JEPL and its associates to CSE and its subsidiaries shall be fully waived, GSS Energy said.