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Lekoil suspended on AIM as Qatar questions validity of US$184mln financing deal

Lekoil paid US$600,000 to Seawave Invest Limited which introduced a group purporting to be the Qatar Investment Authority and arranged the previously announced US$184mln financing deal.

Lekoil Ltd - Lekoil suspended on AIM as Qatar questions validity of US$184mln financing deal

Shares in Nigeria oil firm Lekoil Limited (LON:LEK) have been suspended from trading on London’s AIM market as the validity of a proposed US$184mln project financing was put in doubt.

Earlier this month, on 2 January, Lekoil announced it had entered into a binding loan agreement with the Qatar Investment Authority – with the deal arranged by independent consultancy Seawave Invest Limited.

Lekoil today told investors that it has now been approached by representatives of the Qatari Investment Authority questioning the validity of the loan agreement.

In a stock market statement, the AIM-quoted company said: “Lekoil is urgently seeking to establish, alongside its legal counsel and nominated adviser, the full facts of this matter, and pending this clarification, the company has requested that its ordinary shares be suspended from trading on AIM with immediate effect”.

Lekoil noted that its financial exposure to the previously announced US$184mln financing agreement currently stands at US$600,000 which was the amount paid to Seawave as an initial arrangement fee, in its capacity as introducer to those purporting to be the QIA and lead adviser to the company in relation to the facility agreement, and associated legal fees.

No money has been paid to the ‘presumed counterparty’, Lekoil added.

Quick facts: Lekoil Ltd

Price: 3 GBX

AIM:LEK
Market: AIM
Market Cap: £16.1 m
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