SINGAPORE - Shareholders of an Alaskan oil field will take an enlarged 38.2 per cent stake in Alpha Energy Holdings in exchange for injecting their share of the oil field into the Singapore-listed company.
In a filing with the Singapore Exchange on Wednesday (March 21), Alpha Energy said it will issue 219.7 million new shares to TP Alaska, a subsidiary of Thyssen Petroleum, and Neo Alaska Venture. In exchange, it will receive an additional 29.3 per cent stake in Mustang, which will increase its stake in the oil field to 76.6 per cent from the current 47.3 per cent.
TP Alaska, a holding company, will renounce the consideration shares in favour of its benefiical shareholders, which comprises Thyssen and other parties.
The deal is valued at S$17.1 million, based on the consideration of 219.7 million new Alpha Energy shares issued at 7.79 Singapore cents per share. The issue price represents an 8.35 per cent discount to Alpha Energy's last closing price of 8.5 Singapore cents.
In a separate announcement on Wednesday, offshore and marine group Ezion Holdings is selling up to 98 million options in Alpha Energy to TP Alaska and Neo Alaska Venture for a nominal sum of S$1.
Each of the buyers have agreed not to exercise the options such that one of them will individually become the largest shareholder of Alpha Energy.
The exercise price for each of the options is nine Singapore cents, against Alpha Energy's volume-weighted average share price of 7.79 Singapore cents on March 12. Ezion holds a 30 per cent stake in Alpha Energy.
Alpha Energy said that the acquisition will allow it to consolidate its working interest in the Mustang field into a controlling block. This will drive the Mustang project forward and increase the ability of the group to raise funds, better manage strategy and operations, as well as engage local regulators and stakeholders more effectively.