Private equity fund Samara Capital has sold its entire stake in Asian Oilfield Services to Oilmax Energy, a Mumbai headquartered energy exploration company, for close to Rs 30 crore. According to a stock exchange filing, Oilmax will acquire Samar’s 56.32% stake in an all-cash deal. Following the transaction, Oilmax has made an open offer to acquire additional 26% stake in the company at the rate of R32.40 per share.
The exit comes at a huge loss for Samara Capital, which had first invested in Asian Oilfield, a reservoir imaging company, at around R28 crore in late 2007, picking up a 13.3% stake. It later hiked its holding through a preferential allotment of R25 crore in 2010. Again, in 2013, the PE firm invested R15 crore in the company and increased its total holding to 56.32%. However, Samara had been in an exit mode for a while and had been in talks with a number of potential buyers.
Founded in 1992, Asian Oilfield Services caters to a wide range of services which include domestic and international oil and gas companies. Its services include 2D and 3D seismic data acquisition, processing and interpretation, topographic survey, continuous core drilling for mineral and coal bed methane exploration, wire-line logging, and directional core drilling. However, the company’s financial condition has been on a decline following cancellation of large contracts in Iraq due to growing unrest there. The company has a gross debt of R70 crore as of March 2015. The company’s share on Monday closed at Rs 33, down 2% from the previous close.