On 19 January 2021 the FAR group executed a Sale and Purchase Agreement with Woodside in relation to the sale. As consideration for the sale (the “Transaction”), Woodside has agreed to pay FAR US$45 million and will reimburse FAR’s share of working capital for the RSSD Project from 1 January 2020 of US$82.02 million, totalling US$127.02 million payable on completion. The transaction also includes an entitlement to certain contingent payments capped at US$55 million.
Since the Sale and Purchase Agreement was signed, both PJSC Lukoil and Remus Horizons PCC Limited made non-binding proposals to take over FAR Limited however neither has proceeded.
FAR shareholders were due to consider authorising the agreement with Woodside at a shareholders’ meeting to be held on 21 December 2020. This meeting was postponed several times to consider the PJSC Lukoil and Remus proposals. At the General Meeting on 15 April, a motion to adjourn the meeting until 28 April in order to give shareholders time to consider the Remus takeover proposal was moved and seconded by shareholders.
The General Meeting was adjourned and recommenced at 10am on Wednesday, 28 April. Shareholders approved the sale of FAR’s interest in the RSSD project to Woodside at this meeting. On 30 March 2021 FAR released its unaudited financial accounts for the year ended 31 December 2020. FAR is utilising the ASIC Relief and ASX Class Waiver for extended reporting deadlines and the dispatch of annual reports and will release its Annual Report including audited accounts and its Corporate Governance Statement by the extended deadline of 30 April 2021.
FAR will hold its AGM in June. ASX suspended FAR’s shares from trading in September 2020 following the inclusion of a disclaimer of audit review opinion in the Company’s audited Half Year Report as at 30 June 2020. ASX has advised FAR that it will review the trading suspension once there is no disclaimer of review opinion expressed in the Company’s audited accounts.
Community and Social Projects
During the quarter, FAR on behalf of the joint venture partners, commenced upgrading the Ndemban Clinic which is being converted into a COVID-19 testing and treatment centre. The project involves the repairs and refurbishment to several buildings and upgrades to the water supply system. The works are expected to be completed and put into service in the next few months.
