Malaysia's SEAL Inc in a reverse takeover deal with Indonesian

Malaysia's SEAL Inc in a reverse takeover deal with Indonesian firm

KUALA LUMPUR (AFP): SEAL Inc, a listed Malaysian timber firm, will be 58.4 percent held by Indonesian and foreign entities in a reverse takeover, officials said yesterday.

But the 345.6 million ringgit (US$138.24 million deal will allow the Malaysian timber firm to diversify into the oil and gas business and derive profits from the development of Indonesian oil fields, SEAL told the Kuala Lumpur Stock Exchange.

SEAL is to acquire Energy Process Service Ltd (EPS), with an issue of 69.12 million ordinary SEAL shares of one ringgit at five ringgit each, officials said.

SEAL entered into an agreement to acquire EPS on Tuesday in an exercise it said would transform the firm into a regional and gas player.

EPS owns 80 percent of Genindo EPS Petroleum Ltd (GEPS), which is involved in the development of the existing Sembakung Oil Field in Northeast Kalimantan under the Indonesian national oil firm Pertamina's program to develop oil fields through joint ventures with foreign entities.

The other 20 percent in GEPS is held by PT Genindo Citra Perkasa, controlled by Bambang Trihatmodjo, one of the sons of President Soeharto.

The deal will result in EPS' shareholders having a 58.4 percent in SEAL's enlarged paid-up capital in the reverse takeover.

EPS shareholders are named as Norwich Holdings Ltd, Kernel Holdings Ltd, Carnea Holdings Inc, Timepath Trading Ltd, Viva Investment Ltd and Silver Allied Ventures Inc.

GEPS will take over and operate Sembakung oil field on May 1, while EPS will be responsible for field operations, technical agreement, finance and marketing.

Production in Sembakung began in 1977 and its current output, sourced from 16 oil wells, averages 3,000 barrels per day.

SEAL said the deal was expected to be completed by September and would significantly raise SEAL's earnings in its financial year ending June 30, 1995.