1 Dec 2016 07:00
SacOil Holdings Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1993/000460/06)
JSE Share Code: SCL AIM TIDM: SAC
ISIN: ZAE000127460
SacOil Holdings Limited
("SacOil" or the "Company")
POTENTIAL ACQUISITION OF PETROLEUM PRODUCT WHOLESALER
CAUTIONARY ANNOUNCEMENT PURSUANT TO PARAGRAPH 2.9 OF THE JSE LISTING REQUIREMENTS
SUSPENSION OF TRADING ON AIM
SacOil, the South African based independent African oil and gas company, announces that it is in advanced negotiations on an exclusive basis to acquire a Southern African focussed petroleum product related wholesaler (the "Proposed Acquisition"). The board of SacOil believes that the Proposed Acquisition is fully in keeping with the Company's stated strategy of focussing on cash generating opportunities that expand SacOil's offering across the oil and gas value chain.
If concluded, the Proposed Acquisition would significantly increase SacOil's turnover and provide the Company with a foothold in the downstream oil and gas market which compliments its existing upstream assets such as the producing Lagia field in Egypt.
Paragraph 3.9 of the JSE Listing Requirement - Cautionary Announcement
In terms of paragraph 3.9 of the JSE Listing Requirements, immediately after an issuer acquires knowledge of any material price sensitive information and the necessary degree of confidentiality of such information cannot be maintained, an issuer must publish a cautionary announcement.
As such, shareholders are advised that the Proposed Acquisition, if successfully concluded, may have a material effect on the price of the Company's securities. There can be no guarantee however that the Proposed Acquisition will conclude and further updates will be made in due course.
Accordingly, shareholders are advised to exercise caution when dealing in the Company's securities until a full announcement is made.
Suspension of Trading on AIM
If concluded, the Proposed Acquisition would be classified as a reverse takeover pursuant to Rule 14 of the AIM Rules for Companies.
Accordingly, the Company's shares will be suspended from trading on the AIM Market of the London Stock Exchange at 7.30a.m. today until such time as either an admission document setting out details of the Proposed Acquisition is published or confirmation is given that the Proposed Acquisition is not proceeding. The Company's share will however continue to trade on the JSE.
Market Abuse Regulation
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
1 December 2016
Contacts
SacOil Holdings Limited
Damain Matroos +27 (0)10 591 2260
JSE Sponsor
PSG Capital Proprietary Limited
Nominated Adviser and Broker
finnCap Ltd +44 (0)20 7220 0500
Christopher Raggett
James Thompson
Financial PR Adviser - UK
Buchanan +44 (0)20 7466 5000
Ben Romney
Chris Judd
Madeleine Seacombe
ABOUT SACOIL
SacOil is a South African based independent African oil and gas company, dual-listed on the JSE and AIM. The Company has a diverse portfolio of assets spanning production in Egypt; exploration and appraisal in the Democratic Republic of Congo, Malawi and Botswana; and midstream projects including crude trading in Nigeria and a terminal project in Equatorial Guinea. Our focus as a Group is on delivering energy for the African continent by using Africa's own resources to meet the significant growth in demand expected over the next decade. The Company continues to evaluate industry opportunities throughout Africa as it seeks to establish itself as a leading, full-cycle pan-African oil and gas company.