Spain's Repsol to take 6 more months to study stake purchase in United Global unit

CATALIST-LISTED United Global said on Tuesday that Spain's Repsol Lubricantes will take an additional six months until October to conduct a feasibility study into its possible acquisition of an equity stake in the lubricant manufacturer's wholly owned subsidiary, United Oil Company.

The feasibility study is part of a memorandum of understanding (MOU) between Repsol and United Global, which has been extended for six months to Oct 21, 2019.

After the feasibility study is completed, United Global and Repsol will discuss whether to proceed with the stake purchase and to negotiate the terms and conditions of the definitive agreement to be executed.

Both parties entered into the non-binding MOU in October last year.

United Global said that there is no certainty or assurance as at April 23 that any formalised agreements will be entered into.

Shares of United Global were trading at S$0.49 during the midday break on Tuesday, unchanged from Monday's close.