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Vallianz rights-cum-warrants issue sees Rawabi taking major share

Vallianz rights-cum-warrants issue sees Rawabi taking major share
Vallianz Holdings’ latest corporate exercise to bring it back on a firmer financial footing will result in it coming firmly under Arab control with controlling shareholder and strategic partner Rawabi Holding seeing its shareholding potentially spike to 57.2% from about 14.8% previously.

Vallianz announced the completion of its renounceable non-underwritten 1-for-1 rights cum warrants issue with Rawabi raising its equity interest to 41.2% of the enlarged share issue and with the stake possibly rising to a majority share if it takes up all its rights and warrants allotment.

Rawabi has invested about SGD48.7m ($36.4m) through the rights issue and this amount will be used to set-off against the advances from Rawabi in accordance with the RHCL SOSA, Vallianz said.

Meanwhile the SGD93.0m raised from the exercise of most of its warrants by Rawabi will also be used to set-off against all remaining advances owing by Vallianz to Rawabi.

Similarly Vallianz’s other main shareholder Swiber Holdings will also see its outstanding amounts paid off through the issue of rights and warrants and ending up with a 21.7% stake in the company’s enlarged issued shares.

The completion of the rights cum warrants Issue will also set into motion the respective set-off and settlement agreements (SOSA) with Rawabi and Swiber and should help alleviate its financial difficulties.

Vallianz had in May this year entered into separate SOSAs with Swiber and Rawabi to restructure net payables and shareholder’s advances of up to $138.7m, marking the conclusion of the company’s active discussions with the two companies.

“Rawabi remains confident of Vallianz’s business and prospects over the long term. As its largest shareholder and strategic partner, we will continue to support the Group and ensure that it is in a strong position, both financially and operationally, to execute its long-term growth plans,” said Rawabi Group chairman Abdulaziz AlTurki.

Vallianz ceo Ling Yong Wah said: “The Rights cum Warrants Issue clears the path for the Group to resolve the outstanding issue with SHL and also strengthen our balance sheet. We see exciting opportunities for Vallianz to further expand our business by leveraging our leading market position as one of the largest OSV players in the Middle East.”