PJSC LUKOIL (MISX:LKOH) made a conditional non-binding indicative proposal to acquire FAR Limited (ASX:FAR) for approximately AUD 220 million on February 17, 2021. Under the term, Lukoil will acquire all share of FAR at a price of AUD 0.022 per share. The transaction will be funded from Lukoil's available internal cash reserves and that any formal binding offer would not include any financing conditions. FAR cautions that the Lukoil Proposal is not a legally binding offer, it is subject to targeted and timely corporate due diligence on FAR, it is subject to final Lukoil board approval, and that there is no certainty that the Lukoil proposal will necessarily eventuate. Accordingly, care needs to be used in assessing the Lukoil proposal. The proposal FAR shareholder meeting to consider approving the sale of the RSSD project to Woodside scheduled for February 18, 2021 being rescheduled and obtaining minimum acceptances of 50.1% of shares and a FAR board recommendation. Lukoil has stated that it does not believe it requires FIRB approval for the transaction and that it does not anticipate requiring any other regulatory approvals as a condition of the transaction. Lukoil has stated that it is open to providing reasonable financing support to allow FAR to come out of default in relation to its RSSD Project cash call defaults once its proposal is unconditional subject to customary conditions being agreed. Baker & McKenzie acted as a financial advisor to FAR.

PJSC LUKOIL (MISX:LKOH) cancelled the acquisition of FAR Limited (ASX:FAR) on April 1, 2021.