11th Nov 2013 11:11
LONDON (Alliance News) - Equatorial Palm Oil PLC Monday said a UK takeover rule deadline by which Kuala Lumpur Kepong Berhad had to make a takeover offer for the company has been extended until December 12 to allow the companies to continue funding talks.
Earlier this month, Equatorial Palm Oil said Kuala Lumpur Kepong Berhad will be its new partner in its Liberian Palm Developments joint venture, with both companies pumping USD4 million of new loans into the business to get it up and running again within two months. However, it said the companies were also talking about a possible takeover offer for Equatorial Palm Oil.
In a complicated arrangement, Kuala Lumpur Kepong Berhad will buy Biopalm Energy Ltd's 50% stake in Liberian Palm and its 20.1% stake in Equatorial Palm Oil for 5 pence a share. It will then provide a USD2 million loan to Liberian Palm, and Equatorial Palm Oil will transfer USD6 million of the outstanding liabilities it is owed by Liberian Palm to Kuala Lumpur Kepong.
Equatorial Palm Oil will also lend Liberian Palm USD2 million. After that loan, and the transfer of some liabilities to Kuala Lumpur Kepong, Liberian Palm will still own Equatorial Palm Oil USD5.1 million.
Equatorial Palm Oil shares were up 5.5% at 6.2 pence Monday Morning.
By Steve McGrath; [email protected]; @SteveMcGrath1
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