DRAGON Oil shares were temporarily suspended yesterday pending shareholder consideration of a reorganisation of the company. Shareholders received full details of a deal which was first mooted in October 1995.
If the deal is completed, an Indonesian businessman, Mr Arifin Panigoro, will take effective control of Dragon. He will own between 46 per cent and 48 per cent of its shares and will become chairman of the company.
The company is planning to exercise its option to take a 60 per cent stake in Larmag Energy Assets (LEA) it took the option last October. LEA is a 50 per cent joint venture partner with a state owned company, Chelekenneft, in the exploration and production of oil and gas in the Caspian Sea off Turkmenistan. The stake will be acquired through the conversion of
Under the terms of the deal, Dragon is to raise a total of Pounds 502 million sterling. Some Pounds 37.5 million sterling will be raised through a placing of 2.5 billion new shares with an Indonesian company, Satellite Overseas Ltd, at 1.5p sterling per share. That company is wholly owned by Mr Panigoro.
In addition, Dragon is raising a maximum of Pounds 12.7 million through an open offer to existing Dragon shareholders of two new shares at 1.5p per share for every five shares held.
Because the 60 per cent of LEA being acquired is three times the existing Dragon business and the deal is a reverse takeover under stock exchange rules, Dragon shares have been suspended until shareholders vote on the deal.
