Shareholders Letter, Essay Example

We would like to take this opportunity to explain the process on behalf of our client, the CEO of Maya Oil Group SA, Jason Matthew Maya.  In March, Mr. Maya set out on a journey to acquire Gomez Group SA and Gomez International Investment Trust Ltd.  The acquisition of this property meant that Mr. Maya had to refinance the company to raise capital enter into this venture.  Mr. Maya, with the help of Bain and Co, received a valuation of company accounts, assets, and previous management investment funds.   Mr. Maya and  Ashurst worked on an acquisition agreement in which he offered current members a certain set figure for each share on the basis that they allowed him to act as there agent and sell off their current small percentage ownership in upstream JV’s in Orinoco Belt region in Venezuela.  In 2013,  a Russian company  who is already invested in the region,  inquired about purchasing the asset s for a set price,  but failure to develop the Junín section and delays due to economic and government instability gave the Russian private firm no choice but to withdraw the offer.  Mr. Maya then ventured to Hong Kong to have met with senior officials at a major Chinese importer of crude oil.  Mr. Maya presentation and ongoing development of the area in Venezuela were reasons for Guan Sheng Ltd.  to purchase the asset under a long list of demands.  These included: insurance policies, other demands in reference to exporting arrangements, and with the help of CVP in Venezuela and other parties, such as Pintaca SA, the deal was signed and completed in April 2014. In August/September 2014 the asset was sold for a very profitable price, but with strict conditions on confidentiality and shareholders details to be withheld (mainly due to current economic and political issues that are threatening Venezuela into a state of default).

In February 2015, all shareholders were withdrawn from the company and Mr. Maya took full control of the new company with Maya Oil Royalties Trust SA and Maya Oil Group SA.  Mr. Maya and both the companies had to set up trust accounts to minimize ridiculous taxes imposed on foreign entity companies who make profits through the extraction of hydrocarbon from Venezuela.  If  Mr. Maya did not set up trusts , the double taxes would have been imposed and barriers would  still make it difficult for all concerned to access funds from any such proceeds.  Mr. Maya has had huge issues of compliance because of recent sanctions on Russian companies issued by USA.  The Russian companies  who are partly involved with the JV in Venezuela that Mr. Maya sold were placed on the sanction list along with two officials of the company, as they were ex government parties.  I state for the record this is not an issue in Australia; it is only an issue in countries such as USA,  where Mr. Maya had issues with HSBC.  Mr. Maya has been under much scrutiny because of the amount of profit he  made,  where the assets were held , and the consortium who owned the asset; however , with the help of Baker McKenzie, DL Piper, Ashurst, PKF Calabrera  Association,  and Baines and Company we have completed the compliance to the highest of standards and we have also compiled a very detailed report for KYC so none of you will have any issues when accessing funds.

So in closing,  Mr. Maya and others have completed a phenomenal job and each of you  ,in the coming weeks, will reap benefits that are rarely seen in this current economic environment.  The sale of the asset at this time would not of occurred and with the falling oil prices, but higher than normal overheads Mr. Maya would of have to sell the company back to PDVSA the JV major partner at a price that would be less than fire sale. The payment would have been made over years, as they have little cash flow and a debt to China that is currently taking precedent over other obligations. I hope that you can understand the sensitivity which takes absolute precedent when assessing what information can be shared.  Mr. Maya and Maya Oil Royalties Trust SA and everyone concerned,  sincerely appreciates your financial, emotional support,  and the trust you have shown will be reciprocated to the highest form when you receive your payments.