Europtronic in non-binding term agreement to acquire Kampac

EUROPTRONIC Group Ltd said it has on Feb 7 entered into a non-binding term sheet agreement for a proposed acquisition of a 100 per cent interest in Kampac Oil Middle East FZCO (Kampac).

The term sheet agreement was inked with Kampac's founder and chairman Charles Ampofo, with the view of entering into a definitive agreement.

The proposed transaction is subject to the execution of a definitive sale and purchase agreement, and certain preceding conditions including approval from Europtronic's shareholders.

Kampac's principal activities are oil trading, oil exploration and production and refining and distribution of oil and oil-related products. It is registered in Dubai (the United Arab Emirates) with 20 offices in 17 countries and has an annual turnover of over US$1 billion.

Based on its audited accounts for the financial year ended Dec 31, 2013, Kampac recorded a profit of US$36.5 million with a net asset value of US$443.3 million.

Shares of Europtronic fell 3.3 per cent to 2.9 cents in morning trading, after its trading halt was lifted.