Thursday, November 29, 2012
IEV: has terminated the disposal of 58% stake in IEV Energy, as the Investor has failed to make payment for the first 2 tranches of consideration, which is deemed as a material breach of term in the sales & purchase agreement. IEV Energy owns a 95% interest in PT IEV Pabuaran KSO, which has entered into an agreement for the “Operation Cooperation” program of the Pabuaran Blaock at onshore West Java (KSO Contract). The co is considering other funding alternatives for the KSO Contract and will update the mkt accordingly. Recall on 14 Aug, IEV announced it would sell the stake to Altfield, a co owned by several individuals who are Indonesia businessmen. The consideration was $7.6m. Based on FY11 numbers, this would have boosted IEV’s NAV/sh by 4.17ct to 21.62ct , and EPS by 4.98ct to 8.10 cts. The counter trades at 14.3x P/E.