OEL to acquire 51% of Allied Resources and enter oil & gas business

SINGAPORE - Catalist-listed OEL (Holdings) Limited announced it has offered to acquire 51 per cent of the issued share capital of Allied Resources Limited, an investment holding company with interests in the oil and gas business, for S$18.2 million.

OEL will fund the purchase by paying S$11.9 million in cash and by issuing new ordinary shares at S$0.075 per share, amounting to an aggregate value of S$6.3 million.

The payment for the stake in Allied Resources will be carried out in tranches and upon fulfilment of certain conditions such as the renewal of the joint venture agreement and achievement of oil production targets.

OEL plans to finance the acquisition using a combination of internal funds, bank borrowings and/or fund raising in the capital markets.

At its Extraordinary General Meeting held on 23 June 2015, OEL obtained the approval of shareholders to diversify its business scope to include mineral, oil and gas businesses.