MADRID, Oct 27:
Jynwel Capital, led by CEO Jho Low jointly with Spanish Petroleum Giant Compañía Española de Petróleos (“CEPSA”) is in discussions to purchase Salamander Energy, a company listed on the UK stock exchange according to a recent news report from Bloomberg.
Jho Low, the chief architect which was reportedly behind a €1.7 billion (RM7.06 billion) bid by Jynwel Capital and Abu Dhabi Government Funds for Reebok last week, was previously involved in the successful US$2.3 billion (RM7.54 billion) takeover of Coastal Energy with CEPSA.
The successful acquisition of Salamander Energy by Jynwel Capital and CEPSA would make it a significant oil and gas player in Asia with production in excess of 50,000 barrels and 2P reserves of more than 250 million barrels.
According to recent reports, Jynwel and CEPSA will have to out-bid Ophir Energy for the rights to Salamander. Salamander and Ophir Energy are reportedly nearing a possible £275 million (RM1.45 billion) deal.
Salamander Energy reportedly struck a £174m deal with Sona Petroleum in July to sell a stake in the company’s flagship oil field in Thailand.
However, as oil price has dropped from US$110 a barrel to US$86, Sona investors have reportedly thrown the deal into doubt. Shares in Salamander are worth less than half what they were 18 months ago because of falling production and profits.
Previously, The Wall Street Journal had reported that Jynwel Capital, co-founded jointly by Jho Low and his brother in 2010, is the third generation Low family investment advisory vehicle for the Low family’s global investments.
Jynwel Capital had invested in global commodities company Electrum Group with Kuwait Investment Authority; and was involved in the US$2.2 billion acquisition of EMI Music Publishing jointly with The Blackstone Group’s GSO, Sony Corporation, David Geffen, and Mubadala Development Company.
The Low family’s estimated US$1.75 billion fortune was built by patriarch Low Meng Tak, which was consolidated in 2008 into a global family trust for estate planning purposes.
Teochew-speaking billionaire Low Meng Tak was born in 1922 in a village in China’s Guangdong province.
He built substantial family fortune in China and Thailand primarily in the 1960s and 1970s through his entrepreneurship in iron-ore mining and various liquor distilleries.
He also invested in real estate across Asia, in which a portion has been sold over the years, while the family continues to develop or sell the balance land bank.
Read more atBloomberg.com.