MANILA, Philippines - Australia-based Otto Energy Ltd. has obtained shareholder approval of the proposed divestment of its shares in the Galoc oil field in offshore Palawan to Nido Petroleum Ltd.
In a disclosure to the Australian Stock Exchange yesterday, Otto Energy said the closing of the transaction is expected within two weeks.
“It is confirmed the resolution to approve the sale of shares in the Galoc Production Co. (GPC) W.L.L. put to the general meeting of Otto Energy held on Jan. 20, 2015 was passed on a show of hands,” it said.
GPC is the holder of Otto Energy’s 33 percent interest in the Galoc oil field in offshore Palawan.
In September, Otto Energy announced it had executed a sale and purchase agreement to divest 100 percent of the shares in GPC to Risco Energy Investments Pte Ltd. for $101.4 million.
However, the company received a superior offer from Nido Petroleum for the same transaction but at a higher price of $108 million.
“Risco has waived its right to match the Nido sale and purchase agreement and the Risco share purchase agreement has been terminated,” Otto Energy said.
The company said similar to the ter- minated Risco transaction, completion of the Nido transaction is conditional on Otto shareholder approval.