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Ramba to sell 15% stake to Indon tycoon for S$18.4m

Ramba Energy plans to sell a 14.9 per cent stake in itself to an Indonesian tycoon for S$18.4 million in gross proceeds to repay debt and other uses, the oil and gas company announced late Sunday.

Ramba will place out 68 million shares, or 14.9 per cent of Ramba's post-placement share capital, at 27 Singapore cents apiece to British Virgin Islands-incorporated Wing Harvest.

Wing Harvest is fully owned by one Dr Clement Wang Kai, who is holding the shares of Wing Harvest in trust for Tahir, the founder of the Indonesian conglomerate Mayapada Group.

The placement price represents a 9.1 per cent discount to Ramba's volume-weighted average price of 29.7 Singapore cents on April 29.

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About S$10.9 million of the net proceeds will be used "for the oil and gas business", Ramba said. Another S$4 million will be used to fully repay loan and interest from Ortus Holdings, a related party. The remaining S$3 million will be used for general working capital.

"The group offers its investors the unique opportunity to benefit from Indonesia's robust energy sector and increasing domestic demand for energy resources," Mr Tahir said in a statement. "As the group operates a proven portfolio of lower-risk assets located in energy-rich Sumatra and Java, I am confident in the group's strategy and management team, and am highly optimistic for what the future holds for Ramba."

Ramba chief executive David Aditya Soeryadjaya said that Mr Tahir "has a proven track record across a wide range of business sectors, and his investment in Ramba further affirms investor confidence in our strategy".