Sunda Energy (LSE:SNDA) announced an oversubscribed equity fundraising of £5.25 million before expenses to support its proposed acquisition of Matahio Energy NZ Limited and fund activities across its Asia-Pacific oil and gas portfolio.
The AIM-listed company has secured commitments from existing shareholders and new institutional and private investors through a placing and subscription.
Sunda also plans to launch a retail offer of up to £525,000 through the WRAP platform, potentially increasing the total fundraising to £5.775 million before expenses.
Part of the fundraising remains conditional on shareholder approval at a general meeting scheduled for October 2026. If the relevant resolutions are not approved, the conditional fundraising will lapse and the company will need alternative financing to complete the acquisition.
Placing and Subscription to Raise £5.25 Million
Sunda has arranged an equity placing and subscription expected to raise £5.25 million before expenses.
The fundraising attracted commitments exceeding the amount offered, according to the company, with participation from existing shareholders and new institutional and private investors.
The transaction is structured in two tranches, comprising firm and conditional share issuances.
The conditional tranche requires shareholder approval to authorise the issue of new shares and disapply statutory pre-emption rights.
An additional retail offer of up to £525,000 will be made available through the WRAP platform and will also be subject to the required shareholder approvals.
The company has not disclosed the issue price, number of new shares or the allocation between the firm and conditional tranches in the supplied announcement.
Proceeds to Fund Matahio NZ Acquisition
Sunda intends to use the net proceeds primarily to fund the completion payment and associated transaction costs for its acquisition of Matahio Energy NZ Limited.
Any remaining funds will support the company’s existing oil and gas projects in Timor-Leste and the Philippines.
The acquisition forms part of Sunda’s strategy to expand from exploration activities into a business combining exploration, development and production.
Completion would provide the company with producing oil and gas assets, reserves and an established operating platform in New Zealand.
The transaction remains dependent on the availability of the required financing and satisfaction of the relevant completion requirements.
Shareholder Vote Scheduled for October
Sunda plans to hold a general meeting in October 2026 to seek approval for the resolutions required to complete the conditional elements of the fundraising.
Shareholders will be asked to authorise the issuance of additional shares and disapply pre-emption rights.
Approval is required for the conditional placing and subscription shares, as well as the proposed retail offer.
If shareholders do not approve the resolutions, the conditional fundraising will not proceed.
In that event, Sunda would need to secure alternative financing to complete the Matahio NZ acquisition.
The company has not specified the amount of alternative financing that would be required in the supplied announcement.
Matahio NZ Operates Five Taranaki Basin Permits
Matahio Energy NZ Limited owns and operates five onshore petroleum mining permits in New Zealand’s Taranaki Basin.
The assets produced an average of 1,028 barrels of oil equivalent per day (boepd) during 2025.
Production was predominantly weighted towards oil, with gas accounting for a material component.
The acquisition would provide Sunda with existing production infrastructure and an established local operating team.
It would also introduce operating cash flow and reserves into the group’s portfolio, subject to completion of the transaction.
New Zealand’s government has indicated an intention to address declining domestic gas production, providing part of the policy context for Sunda’s proposed investment.
Acquisition Would Expand Sunda’s Asia-Pacific Operations
Sunda currently holds oil and gas interests in Timor-Leste and the Philippines.
The proposed acquisition of Matahio NZ would extend its operations into New Zealand and add producing assets to its existing exploration portfolio.
Management intends to develop the company into a full-cycle exploration and production business, combining established production with exploration and development opportunities.
The New Zealand assets would provide an operating platform alongside Sunda’s existing Southeast Asian projects.
The acquisition remains proposed rather than completed, and the anticipated operational and financial contributions are dependent on the transaction proceeding.
Next Steps
Sunda’s immediate priorities are to complete the fundraising process, obtain the necessary shareholder approvals and secure the financing required for the Matahio NZ acquisition.
The October general meeting will determine whether the conditional fundraising and retail offer can proceed under the proposed structure.
If approved and completed, the acquisition would add five producing petroleum permits in New Zealand to Sunda’s portfolio.
The company intends to allocate any remaining fundraising proceeds to its projects in Timor-Leste and the Philippines.
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