As previously announced in a press release dated June 11, 2009 Malka Oil have entered into an agreement with the Russian investment bank Renaissance Capital as financial adviser to review the company’s strategic opportunities.
As part of this agreement the company has investigated the possibility of acquiring other companies, new licenses, or carrying out a new share issue for the expansion of the company, or as an alternative divest its subsidiary LLC STS-Service (“Subsidiary”). Renaissance has for some time provided a data room of the Subsidiary to which a number of reputable companies in the market have been granted access.
Several companies have expressed an interest regarding an acquisition of the Subsidiary and Malka Oil is now involved in discussions with some of these interested parties but so far these discussions have not led to any concrete results. With regard to the information circulating in the media, the Board of directors has after careful examination of a letter received by the Board of directors on 16 October, 2009, come to the conclusion that, based on the information available, as of today there is no substance behind the offer or the levels implied by it.
The review of the company’s strategic opportunities is thus still ongoing.
For further information, please contact:
Maks Grinfeld, MD, tel: +46 768 077 614
Sven-Erik Zachrisson, Chairman of the Board of Directors, tel: +46 8 41 05 45 96
For further information on Malka Oil AB, see the website www.malkaoil.com
Reasonable caution notice: The statement and assumptions made in the company’s information regarding Malka Oil AB’s (“Malka”) current plans, prognoses, strategies, concepts and other statements that are not historical facts are estimations or “forward looking statements” concerning Malka’s future activities. Such future estimations comprise but are not limited to statements that include words such as “may occur”, “concerning”, “plans”, “expects”, “estimates”, “believes”, “evaluates”, “prognosticates” or similar expressions. Such expressions reflect the management of Malka’s expectations and assumptions made on the basis of information available at that time. These statements and assumptions are subject to a large number of risks and uncertainties. These, in their turn, comprise but are not limited to i) changes in the financial, legal and political environment of the countries in which Malka conducts business, ii) changes in the available geological information concerning the company’s projects in operation, iii) Malka’s capacity to continuously guarantee sufficient financing to perform their activities as a “going concern”, iv) the success of all participants in the group, or of the various interested companies, joint ventures or secondary alliances, v) changes in currency exchange rates, in particular those relating to the RUR/USD rate. Due to the background of the many risks and uncertainties that exist for any oil-prospecting venture and oil production company in its initial stage, Malka’s actual future development may significantly deviate from that indicated in the company’s informative statements. Malka assumes no implicit liability to immediately update any such future evaluations.