NeXchange Bhd (DNeX) shares continued to gain the attention of investors after registering an increase of four sen or 4.91% to 85.5 sen in today's trading session.
The factor was driven by the acquisition of a contract worth RM88 million from the Ministry of Finance as well as plans to acquire the remaining 50% stake in its subsidiary in Avalon Oilfield.
At 10.28am, the counter showed a jump of around 3.68% or three sen to 84.5 sen and thus became the most actively traded stock today with 120.08 million shares changing hands.
So far, the DNeX counter recorded an increase of 267.39%.
DNeX also announced that its subsidiary Ping Petroleum UK Ltd (Ping UK) acquired the remaining 50% stake in Avalon Oilfield from Sumitomo Corp's subsidiary, Summit Exploration and Production Ltd with a total value of around RM71.72 million ($ 17 million).
Moreover, as co -owner and operator of Avalon Oil Plantation, the planned acquisition will prevent Ping UK from any adverse decisions.
This is because any conflicting decision than it should be is likely to arise if the vendor sells a 50% stake to a third party.
Through the expansion of Avalon Oilfield, DNeX hopes that it can result in a significant increase in oil production and recommendations for Ping UK.
The proceeds from this development will also reduce portfolio risk as Ping UK’s revenue will be realized from two independent installations namely Anasuria Cluster and Avalon Oilfield after the first production from Avalon Oilfied.
In the absence of any unforeseen circumstances, the proposed acquisition is expected to be completed in the third quarter of 2021.
