GP Petroleums Limited has secured a four-month exclusivity window with Incubit DMCC and its affiliates to evaluate a potential strategic acquisition spanning assets across India, the UAE, Mauritius and East Africa.
The company said it has entered into an Exclusivity Agreement with Incubit DMCC as part of its evaluation of the proposed transaction, internally code-named “Project Petroleum.”
Under the agreement, GP Petroleums, acting as the purchaser, has exclusive rights for four months from the effective date to conduct due diligence, evaluate the target assets and negotiate the proposed transaction. During this period, Incubit DMCC and its affiliates cannot seek or negotiate an alternative deal involving the assets.
For the exclusivity rights, GP Petroleums will pay an Exclusivity Fee of USD 100,000 within 10 business days of signing the agreement. The fee will be adjusted against the final transaction consideration if the deal is ultimately completed, subject to the terms of the agreement.
The proposed transaction has a related-party dimension. Incubit DMCC is part of GP Petroleums’ related-party group due to Harshavardhan Sinha’s shareholding in both Incubit DMCC and Incubit Energy Singapore Pte. Ltd., which holds a 13.89% stake in GP Petroleums, as well as his common directorship in the entities.
The company said the necessary initial approvals have been obtained, while any additional regulatory, statutory or corporate approvals required for the transaction will be pursued in accordance with applicable laws.
Importantly, the exclusivity agreement does not commit GP Petroleums to completing the acquisition. The proposed deal remains subject to satisfactory due diligence, valuation of the assets, agreement on definitive transaction terms and receipt of all necessary corporate, statutory and regulatory approvals.
The exclusivity arrangement can end after the four-month period or earlier upon the signing of definitive transaction agreements.
