Liberia palm oil project shareholder in default?
On 8 July 2013, Equatorial Palm Oil (EPO) issued a default notice to Biopalm Energy Limited, part of the Siva Group. The company said: “EPO has, however, advised Biopalm that any dilution of shareholding that results from raising equity in EPO, due to Biopalm's failure to honour its Commitment, should, in EPO's view, result in a corresponding increase in EPO's share in LPD, which is, at present, held 50/50 by EPO and Biopalm as well as an award for damages for loss due to Biopalm's failure to honour its commitments under the Investment Agreement.”
Biopalm was earlier reported to have effective 63.3% stake in the Liberia palm plantation assets via a 50% JV and 13.5% stake in EPO. However, a report in Feb 2012 indicates it has a 26.71% stake in EPO, indicating an increase.
The Liberia plantation concession area is some 170,000 ha. Liberia is the centre of the largest scale oil palm FDI projects in Africa so far. Projects have been held up by land disputes. The other key players are Sime Darby and Golden Veroleum / Golden Agri.
*Please contact Khor Reports if you would like to get a copy of our info briefing on this matter, including profile of Siva Group, and various info collated on Equatorial Palm Oil.
News source:
Equatorial Palm Oil issues default notice to partner
8 July 2013 | 11:23am StockMarketWire.com
The board of Equatorial Palm Oil (PAL:AIM) has issued a written notice to its joint venture partner, Biopalm Energy Limited (a wholly owned subsidiary of Indian conglomerate, the Siva Group) setting out that Biopalm is in material breach of its obligations under the investment agreement signed between the parties on 10 December 2010. Biopalm is required under the Investment Agreement to arrange and/or contribute, either directly or through any member of its group, any external funding required by the joint venture company, Liberian Palm Developments Limited (up to a maximum of US$30,000,000). Notwithstanding Biopalm's obligations to fund LPD up to the Commitment amount, EPO intends to continue to fund LPD and its assets in the Republic of Liberia. EPO has, however, advised Biopalm that any dilution of shareholding that results from raising equity in EPO, due to Biopalm's failure to honour its Commitment, should, in EPO's view, result in a corresponding increase in EPO's share in LPD, which is, at present, held 50/50 by EPO and Biopalm as well as an award for damages for loss due to Biopalm's failure to honour its commitments under the Investment Agreement. EPO continues to negotiate and work with Biopalm regarding the Commitment with a view to an amicable solution being reached, but has reserved all rights to take action against Biopalm under the Investment Agreement. EPO shall make further announcements regarding the above, and its continued discussions with Biopalm, in due course. Story provided by StockMarketWire.com - See more at: http://www.stockmarketwire.com/article/4628151/Equatorial-Palm-Oil-issues-default-notice-to-partner.html#sthash.cjyWmQnf.dpuf
Biopalm was earlier reported to have effective 63.3% stake in the Liberia palm plantation assets via a 50% JV and 13.5% stake in EPO. However, a report in Feb 2012 indicates it has a 26.71% stake in EPO, indicating an increase.
The Liberia plantation concession area is some 170,000 ha. Liberia is the centre of the largest scale oil palm FDI projects in Africa so far. Projects have been held up by land disputes. The other key players are Sime Darby and Golden Veroleum / Golden Agri.
*Please contact Khor Reports if you would like to get a copy of our info briefing on this matter, including profile of Siva Group, and various info collated on Equatorial Palm Oil.
News source:
Equatorial Palm Oil issues default notice to partner
8 July 2013 | 11:23am StockMarketWire.com
The board of Equatorial Palm Oil (PAL:AIM) has issued a written notice to its joint venture partner, Biopalm Energy Limited (a wholly owned subsidiary of Indian conglomerate, the Siva Group) setting out that Biopalm is in material breach of its obligations under the investment agreement signed between the parties on 10 December 2010. Biopalm is required under the Investment Agreement to arrange and/or contribute, either directly or through any member of its group, any external funding required by the joint venture company, Liberian Palm Developments Limited (up to a maximum of US$30,000,000). Notwithstanding Biopalm's obligations to fund LPD up to the Commitment amount, EPO intends to continue to fund LPD and its assets in the Republic of Liberia. EPO has, however, advised Biopalm that any dilution of shareholding that results from raising equity in EPO, due to Biopalm's failure to honour its Commitment, should, in EPO's view, result in a corresponding increase in EPO's share in LPD, which is, at present, held 50/50 by EPO and Biopalm as well as an award for damages for loss due to Biopalm's failure to honour its commitments under the Investment Agreement. EPO continues to negotiate and work with Biopalm regarding the Commitment with a view to an amicable solution being reached, but has reserved all rights to take action against Biopalm under the Investment Agreement. EPO shall make further announcements regarding the above, and its continued discussions with Biopalm, in due course. Story provided by StockMarketWire.com - See more at: http://www.stockmarketwire.com/article/4628151/Equatorial-Palm-Oil-issues-default-notice-to-partner.html#sthash.cjyWmQnf.dpuf