Photo: Illustration of Sangomar project where FAR has interest; Photo source: Woodside

FAR puts its foot down and sets new date for Woodside sale approval

Australia’s FAR Limited is putting a stop to further delays of its shareholder meeting, which is supposed to consider the sale of FAR’s interest in the Sangomar project in Senegal to Woodside, by confirming a new date.

With the non-binding indicative proposals from Remus Horizons and Lukoil still being incomplete, the company plans to proceed with the Woodside sale if the shareholders provide their approval.

To remind, FAR received a non-binding indicative proposal from Remus Horizons to acquire all the shares in FAR at 2.1 cents per share in December 2020.

Come January 2021 and FAR executed a sale and purchase agreement with Woodside related to the sale of its interest in the Senegal RSSD Project.

However, it was determined that the company’s shareholders needed to consider the sale to Woodside at a meeting on 18 February in the context of Remus takeover proposal.

But the plot thickened once again after FAR on 17 February 2021 also received a non-binding indicative proposal from Lukoil to acquire all the shares in the company at 2.2 cents per share.

Lukoil emphasised that the price proposed by it represents a higher value for FAR shareholders than both the proposed sale of the RSSD project to Woodside and the incomplete proposal from Remus Horizons.

In order to clarify Lukoil’s proposal, FAR rescheduled its shareholders meeting scheduled for 18 February, which has been done several times before due to new developments occurring.

However, it seems that nothing new has happened since the February proposal. Namely, in an update on Friday, FAR Limited said that both Remus Horizons and Lukoil proposals remain incomplete at this point in time.

According to its update, the company has postponed the shareholders meeting to approve the sale of its interest in the RSSD Project to Woodside Energy, having regard to its receipt of these proposals.

In these circumstances, FAR has now determined to reconvene the shareholders meeting on 15 April 2021.

The company said it will provide further information to shareholders prior to the shareholders meeting being held, and shareholders who have already voted will have the opportunity to change their vote if they wish.

FAR underlined it has no intention of further postponing the shareholders meeting, noting that it intends to proceed with the Woodside sale if shareholders provide their approval.