PERTH (miningweekly.com) – ASX-listed Aurora Funds Management was considering writing down its investment in fellow listed Molopo Energy.
The company on Friday told shareholders that Aurora had formed the view that if Molopo’s transactions around the Orient oil and gas project could not be unwound, and the cash returned to Molopo, the value of Aurora’s investment, which represented 55% of the Fund’s net asset value, would need to be written down.
Aurora previously applied to the Australian Takeovers Panel requesting an interim order against Molopo, after that company informed shareholders that not only had it taken full ownership of the Orient project, in the US, but it had also transferred ownership of the project over to Drawbridge Holdings in return for a 30% interest in that company.
Molopo obtained full ownership of the Orient project after redeeming its joint venture partner’s shares in Orient, and committing to funding the project in full to the tune of some $21-million.
Aurora told shareholders that it would wait for the outcome of the Panel orders before determining whether to write down the value of its Molopo investment, and whether to exercise its rights to withdraw its current takeover offer.
Aurora in 2017 revealed plans for an 18c a share takeover for Molopo, with shareholders able to elect to receive either a cash consideration, which will be capped at A$5-million, or Aurora shares.