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Malaysia : DNeX to enter into oil and gas industry through RM203M OPGC deal

June 19, 2014

Seeking to enter into the oil and gas industry, Dagang Nexchange Bhd (DNeX- earlier called Time Engineering Bhd) has inked a deal worth RM203 million to acquired all of the stake in OGPC Group.

DNeX said it will satisfy the acquisition amount through RM100 million cash, while the balance RM103 million will be satisfied through the issuance of 396.15 million DNeX stocks at 26 sen per share along with 198.08 million free warrants.

The cash payment will be sourced from a planned rights issue, proposed stock issue and/or internal finance.

DNeX stated : "The proposed acquisitions would provide DNeX with a new core business in addition to its current ICT business. At present, it is the intention of DNeX to continue pursuing its current business in ICT whilst venturing into the oil and gas industry."

It added : "Barring any unforeseen circumstances, the proposed acquisitions is expected to contribute positively to DNeX Group in the future, thus enhancing DNeX's shareholders' value in the medium to long term."

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Source: TendersInfo (India)

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