takeover approaches, page-9

Indus Capital are a hedge fund based in New York who specialise in Asian investment.

NXS and Viking Shipping link....... worth reading.

Should have seen this coming.


NEXUS TO RAISE UP TO A$93 MILLION
VIA PLACEMENT @ $1.35 PER SHARE
FPSO OPTION SECURED FOR CRUX
KEY POINTS
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A$35 million placement has been completed and funds received from FPSO owner Viking Shipping Limited (“Viking”) – Tranche 1
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Nexus has agreed to enter into an exclusive arrangement with a Viking subsidiary for the supply of a FPSO for Crux under an Option Agreement, upon completion of a further A$58 million placement to Viking before the end of July 2007 – Tranche 2
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Both tranches are priced at A$1.35 per share, a premium of 9% over the last five days of trading on ASX
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The FPSO option will provide a fully termed proposal on attractive lease rental terms for the Crux liquids project
Nexus Energy Limited (“Nexus”) has completed the first tranche placement of new shares to Viking Shipping Limited (“Viking”) raising A$35 million at A$1.35 per share. Viking may also subscribe for a further placement of A$58 million at A$1.35 per share by the end of July 2007 to obtain an exclusive arrangement for the supply of a Floating Storage Production and Offloading (“FPSO”) facility for the Crux liquids project pursuant to a Floating Production Facility Option Agreement (“Option Agreement”) between Nexus and a subsidiary of Viking.
Nexus has issued 25.9 million ordinary shares for the tranche 1 placement and subject to completion of the second tranche will issue a further 42.8 million ordinary shares for the tranche 2 placement. The completion of both tranches will result in the total issue of 68.7 million ordinary shares, being the equivalent of 15% of Nexus’ prior existing issued capital.
Under the Option Agreement, Vanguard Oil and Gas International (“Vanguard”), a subsidiary of Viking, will provide Nexus with a leased FPSO on pre-agreed terms based on a transparent calculation of lease rates for deployment on the Crux liquids project.
The proceeds from the placement will be used to fund the further development of the Crux and Longtom projects. Nexus will benefit from the injection of capital on ‘better than market’ terms as well as an option to secure a fully termed proposal for the development of Crux by the end of the third quarter of 2007.
In addition, Nexus expects to develop a strategic relationship with Viking, a company with extensive experience and relationships in the shipping business.
Vanguard has previous Australian FPSO experience and with the financial support from its parent (Viking) and is expected to assist Nexus in maximising the value from the highly prospective Crux liquids project. Vanguard is in the process of purchasing up to three vessels for FPSO deployment in a range of oil field development applications.
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NEXUS ENERGY LTD ASX CODE: NXS
DATE: 10 JULY 2007
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Nexus will gain access to the expertise and ship conversion and construction relationships of Thome Ship Management (“Thome”), one of Asia’s largest Asian-based ship management companies employing some 5,500 seagoing and shore based staff.
Thome is presently supervising the construction of more than 40 new vessels, is involved with the management of several FPSOs and recently completed a full floating storage and offloading vessel conversion.
Nexus managing director, Ian Tchacos, said "The agreement announced today further strengthens Nexus's capital base and our access to critical skills by creating a strong alignment with an important industry partner.
Viking is highly motivated to assist us with the development of the Crux liquids project and other potential projects which require floating production solutions. It is an important milestone in bringing the very significant and valuable Crux project closer to development."
Viking commented, "Viking considers Nexus to be a very attractive investment opportunity offering an exciting pipeline of projects supported by a very capable management team. Viking and Vanguard consider Nexus to be an excellent platform through which the parties may jointly pursue other upstream oil and gas opportunities requiring floating solutions."
For further information please contact: Ian Tchacos David Griffiths Managing Director Gryphon Management Australia Phone: 03 9660 2500 Phone: 08 9382 8300 Fax: 03 9654 9303 Mobile: 0419 912 496 Website: www.nexusenergy.com.au Website: www.gryphon.net.au
Or
Ian Howarth
Farrington National
Phone: 03 9223 2465
Mobile: 0407 822 319
Email: [email protected]
Background on Viking Shipping Limited (“Viking”), Vanguard Oil and Gas International (“Vanguard”) and Thome Ship Management (“Thome”)
Viking is a company 100% owned and controlled by the Clauson family. Viking is also the majority owner of Vanguard and the largest shareholder in Bitumen Singapore, a company in the process of establishing a leading position in the market for the marine transportation of bitumen.
Vanguard was founded in 1994 by Mr Michael Barraclough, who is Managing Director and who has been continuously involved in the field development and FPSO industry since 1988. Vanguard’s experience both in Australia and beyond has been to provide fast track, lower cost, offshore production solutions based around the use of Mobile and Floating Production Systems.
Thome Ship Management has developed over the last 30 years into one of the largest Asian based ship management companies operating over 200 vessels and employing some 5,500 seagoing and shore based staff.
Vanguard, through its Singapore subsidiary Vanguard Field Development Solutions, is presently in the process of securing several other FPSO projects for clients in the region.