When oil and gas exploration and production company KrisEnergy scouts the horizon in Southeast Asia for acquisitions, among the key challenges the young company faces are the rich valuations in the region.
According to Richard Lorentz, a co-founder and director business development of Singapore-listed KrisEnergy, there is a propensity among bidders to overpay when investment banks run an auction process.
A case in point is US company Newfield Exploration's sale of its Malaysian assets last year, Lorentz told FinanceAsia in a recent phone interview. Malaysian company SapuraKencana Petroleum bought the assets for $898 million.
“We have pretty ruthless standards when...
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