Dateline 2014-08-15, Malay Mail:
Reach Energy Bhd, set up by veterans in Malaysia’s oil and gas industry, made its market debut in Kuala Lumpur today after completing the country’s largest-ever initial public offering by a special purpose acquisition company (SPAC).
The RM750 million (US$236.44 million) IPO exceeded the initial share sales by other local SPACs such as Sona Petroleum Bhd and Cliq Energy Bhd, which raised between US$100 million and US$150 million last year.…
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Posted by Wata
Can all the SPACs give me a direct line into insider trading opportunities?
Dateline 2014-07-24, Bloomberg Businessweek:
Malaysia’s Reach Energy Bhd. has attracted investors including Norway’s $890 billion sovereign wealth fund in an initial public offering to fund its acquisitions of oil and gas fields.
Norges Bank Investment Management, the world’s largest sovereign wealth fund, and Malaysia’s pilgrim fund will invest in the 750 million-ringgit ($237 million) IPO, Managing Director Shahul Hamid Mohd Ismail said in a July 21 interview. Norway’s wealth fund will own a substantial stake in the special-purpose acquisition company, he told reporters today.
Rising energy demand is spurring companies such as Reach Energy to buy and develop smaller oil and gas fields ignored by their larger international counterparts. Malaysia’s Sona Petroleum Bhd. (SONA), also a special-purpose acquisition company, finalized an agreement this week to buy a stake in two Thai oil and gas blocks of U.K.-based Salamander Energy Ltd. (SMDR)
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Dateline 2014-06-23, The Sun Daily:
Reach Energy Bhd, the fourth oil and gas (O&G) special purpose acquisition company (SPAC) to be listed, aims to raise RM750 million from a listing on the Main Market of Bursa Malaysia.
It obtained approval from the Securities Commission Malaysia (SC) for its listing exercise last Thursday.
Reach Energy’s initial public offering (IPO) exercise provides an issue price of 75 sen per public issue share which comprises: 980 million public issue shares together with 980 million Warrants on the basis of one warrant for every one public issue share subscribed by way of placement to selected investors and 20 million public issue shares together with 20 million warrants on the basis of one warrant for every one public issue share subscribed available for application by the Malaysian public.
The company said in a statement last Friday that it expects to complete the flotation exercise by the third quarter of 2014.
Hong Leong Investment Bank Bhd is the principal adviser, placement agent and underwriter for its initial public offering (IPO) exercise.…
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Dateline 2014-06-14, The Star:
HOW much control should Special Purpose Acquisition Companies (SPACs) exert over the assets they acquire? This is a question that is increasingly becoming a moot point with listed SPACs.
Here’s one indication of this: According to sources, Reach Energy Bhd, the oil and gas SPAC seeking a listing on Bursa Malaysia, has tweaked one the clauses in its prospectus relating to control over the assets it hopes to buy. It has now stipulated that it will seek to secure majority control over the assets it buys into.
Apparently this was done to ensure there was no confusion in this area going forward.
SPAC guidelines from the start, had a very strict view on this matter. The rules initially required SPACs to secure both majority ownership and management control over the assets they buy. Subsequently, the rules were loosened after taking into consideration the dynamics of certain industries such as the minerals and resources industry that includes oil and gas.…
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Posted by Wata
Have you ever read the definition of a shell company?
Dateline 2014-05-12, Reuters:
Malaysia’s Reach Energy Bhd, a special-purpose acquisition company (SPAC) with no existing assets, plans to list shares on the local bourse in a deal to fetch 750 million ringgit ($232 million), according to a draft prospectus published on Monday.
The deal, which is expected in July this year, could mark Malaysia’s largest listing by a shell company with no assets. A SPAC is set up with the intention of buying firms that will be later folded into the business.
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Wata - Malaysian Oil and Gas Engineer 