Sumatec Resources Berhad (KLSE:SUMATEC) entered into heads of agreement to acquire Markmore Energy (Labuan) Ltd. from Tan Sri Halim bin Saad and Abu Talib bin Abdul Rahman for approximately $210 million on July 1, 2016. As of August 26, 2016, a definitive agreement was entered into. Sumatec Resources will acquire 26.4 million shares of Markmore Energy. Under the terms of the agreement, Sumatec Resources will pay $205 million as the consideration and $45 million as reimbursement cost for gad development expensed incurred for the various studies, testing and conceptual design to fast-track the development and monetization of the gas reserves at the Rakushechnoye oil and gas field. Sumatec agrees to pay oil royalty on future oil production from the Rakushechnoye oil and gas field to Markmore. The transaction is subject to approval of by the relevant authorities and due diligence. The pro forma effects of the proposed acquisition on the share capital, net assets, dividend policy, gearing and substantial shareholdings of Sumatec can only be determined upon the finalization of the terms of the funding requirements for the proposed acquisition and the execution of agreement. The proposed acquisition is expected to contribute positively to the future earnings of Sumatec. M & A SECURITIES Sdn. Bhd. acted as financial advisor for Sumatec Resources. As on February 17, 2017 the said approval for the acquisition are still pending. Sumatec Resources Berhad (KLSE:SUMATEC) cancelled the acquisition of Markmore Energy (Labuan) Ltd. from Tan Sri Halim bin Saad and Abu Talib bin Abdul Rahman on March 13, 2017.