Herbert Smith Freehills has advised MIE Holdings Corporation on the disposal of 60% of its indirectly wholly-owned subsidiary, Palaeontol B.V., to Reach Energy Berhad for US$154,889,000.

Palaeontol B.V. indirectly holds oil and gas assets in southwest Kazakhstan, including four existing oil and gas producing fields as well as one exploration area.
The share sale and purchase agreement was signed on 5 March and the transaction is expected to complete later this year.

Hong Kong-listed MIE Holdings is a leading independent upstream oil and gas company principally engaged in the exploration, development, production and sale of crude oil, and other petroleum products in China, Kazakhstan and the United States of America.

Reach Energy is an oil and gas special purpose acquisition company listed on the Malaysia Stock Exchange. The proposed acquisition will be the first oil and gas asset to be owned by Reach Energy.

"We are delighted to have assisted MIE on this strategic transaction," said partner Hilary Lau, who led the team advising MIE. "It allows MIE to team up with a strong partner to maximise the growth and economic value of its Kazakhstan assets."

Hilary was assisted by Greater China senior associates Rachel Xia and Sherry Lai, associate Helen Huang and trainee Sherwin Tsang.  Partners Tom Chau (capital markets), Monica Sun (energy) and Fergus Smith (finance) also supported the deal team.