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Sale-and-purchase agreement for IEG disposal has lapsed: New Silkroutes
NEW Silkroutes Group (NSG) on Monday announced that the sale-and-purchase agreement for the disposal of International Energy Group (IEG) to TK Energy has lapsed as at June 30, with the buyer having failed to disburse the loans to New Silkroutes Capital (NSC) and IEG.
The buyer has not demonstrated its ability to inject the required capital into IEG for its business, NSG said, adding that it will continue to look for a suitable buyer with the financial means to maintain and grow IEG's business.
In an earlier announcement on March 25, the group said that its subsidiary NSC had sold its entire stake in IEG for US$10 million.
TK Energy is a private limited company incorporated in Hong Kong with stakeholders who have interests in the oil and gas sector subsidiary.
TK Energy was meant to extend a loan of US$10 million to NSG, which would be deemed repaid in full when the disposal was completed. It was also supposed to make available to IEG credit facilities of up to US$250 million, which was to include an initial loan of US$50 million.