business
Hibiscus says co-shareholder claims ‘unsupported’
Hibiscus Petroleum Bhd has asserted that a co-shareholder in Lime Petroleum Plc, Singapore-listed Rex International Holding Ltd, has continued making only "bare, unsupported assertions and claims" regarding alleged discrepancies on Hibiscus' part when disclosing information on Lime Petroleum Plc (Lime Plc).
"The actual position is as reflected in the earlier announcements and other disclosures made by the company," said Hibiscus.
"The company and its subsidiaries fully reserve all their rights and will continue to act accordingly to safeguard their interests," it added.
Its statements came following Rex's filings with the Singapore Exchange, which insisted, among others, that the shareholding changes in Lime Petroleum Norway AS and Masirah Oil Ltd it stated earlier were correct, and not purported.
Singapore-listed Rex, which wholly owns Rex Middle East Ltd, had announced to the republic's securities exchange on December 14 that Lime Norway had completed a restructuring exercise approved by Lime Norway's shareholders at an extraordinary general meeting in October 2015.
Its unit Rex International Investments Pte Ltd (RII)'s direct interest in Lime Norway had increased from 26.18% to 96.49% after subscribing to the entire new share issue of Lime Norway for 77.4 million kroner (RM37.4 million), it had said.
Rex said Lime Plc, in which Rex has a 65% interest, held the remaining 3.51% interest in Lime Norway.
Hibiscus, however, said in its quarterly report for the quarter Sept 2015 RII would only have a 26.18% direct interest in the enlarged paid-up capital of Lime Norway, with Lime Plc holding the remaining 73.82% direct interest.
According to Hibiscus, its group's effective interest in Lime Norway would decrease only to 25.84% from 35% previously on completion of RII's capital injection into Lime Norway.
Hibiscus bought a 35% equity stake in Lime Plc for US$55 million (RM227.9 million) in 2012, and the stake is held by its unit Gulf Hibiscus Ltd.
Further, Rex had said Lime Plc was in financial distress because Lime Plc was currently unable to pay its creditors.
Hibiscus, however, had rebutted the claim, saying it was a "clearly incorrect" statement and conclusion without proper supporting evidence and verification.
"Until and unless such a position has been conclusively determined and properly confirmed, it is premature and erroneous to state (as what Rex has done) that Lime Plc is in a 'financial distress situation'," Hibiscus had said in a February 12 filing. – The Edge Markets, March 4, 2016.
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