For Sona, Third Time Just as Lucky

Sona Petroleum Bhd MD Datuk Seri Hadian Hashim discusses the following questions:  - SPACs -- in which … investors buy stock in a shell company in the hope that the management team locate and monetise qualified assets .. .. have acquired somewhat of a bad reputation among the regulators, who have either rejected or delayed a number of SPACs. (Australasia and Terra Gali spring to mind). The grapevine even whispers of a jammed pipeline of SPACs waiting for SC approval to emerge How would you respond to this perception that SPACs mostly benefit the arrangers only? - Is this why the moratorium imposed on Sona has been the most onerous of any SPAC thus far?  - Sona - in your own words -- have a management team of over 300 years relevant experience between them -- plus with a Dutchman, Indonesian and a Burmese in the fold, there is diversity, useful when buying overseas.If the team is this good -- and the assets so lucrative -- why not go the private equity route instead?  - There have been criticisms that there has been an over-preponderance of Oil and Gas-based SPACS in Malaysia -- and that both the businessmen (as well as the SC) lacks imagination ..  - Of the cornerstone portion – what % went to foreign vs. domestic institutions? - Around 29% -- or some 275 million shares out of the 959 million shares allocated for institutions have been offered to six cornerstone investors, namely Hong Leong Asset Management, Hong Kong-based hedge fund Segantii Capital, and investment firm Davidson Kempner, as well as the three banks backing the listing: RHB Investment Bank, CIMB Investment Bank and Kenanga Investment Bank.What was their purchase price? - And their moratorium terms?  - What was the main pushback from institutional investors during the roadshow? - Thus far -- how much have you raised? How will this affect your appetite for qualifying assets?  - Why are you giving investors free detachable warrants? Why the continued need for this sweetener after the success perceived at least, until earnings flow, for both Hibiscus and CliQ?  - CLIQ listed in April last year, but is yet to make any acquisitionsWhat makes you confident that you’ll find suitable qualifying assets (QA) within the 3yr timeframe?  - Will it be more difficult to find attractive acquisitions with crude prices near $100/bbl and the MYR having come off 5% since the start of May? - You aim to target acquisitions in SE Asia, the Middle East and select African countries – how can your mgmt. team focus on such a broad geographic scope?  - How do you plan to mitigate sovereign / military / conflict risk in African nations? Especially places like Congo, Nigeria & Uganda? - Furthermore, ‘informal payments’ are commonplace in securing deals in these mkts… Will it be a level playing field for Sona? - Your BOD is represented by a national from each of Myanmar and Indonesia… Are these countries of origin good indicators or potential acquisitions?  - Ultimately, oil prices need to remain high for Sona to be viable over the long-term. While you’ve been quoted in the price as saying this is expected to be the case .. more recently we’ve had the Chinese and European economic slowdowns impacting the demand-side, while the US shale revolution and Canadian tar sands have helped boost supply…What are the key long-term structural drivers in your view that will keep the oil price elevated if at all?See omnystudio.com/listener for privacy information.