Vallianz announced that each of the trade creditor has agreed to subscribe to a total of 156.26m shares at SGD0.02 per share, which is at a premium of 16.28% to the volume weighted average price of SGD0.0172 traded on the Singapore Exchange on 19 June.
“The subscription of the settlement shares by the trade creditors pursuant to the proposed subscription will be fully set-off against the aggregate trade payables of SGD3,125,220 pursuant to the proposed settlement,” Vallianz said.
“The rationale of the proposed subscription and settlement is to settle the trade payables whilst conserving cash reserves of the group.”
The company added that the balance of the trade payables amounting to SGD77.22 will be settled in cash to the respective trade creditors.
The eight trade creditors include Sense Infosys, Noah Marine Engineering, KPM Marine, KTL Offshore, Shanghai Oteck Marine Technology Co, Sealand Continental, Ledys Marine & Services, and Highlander Marine (Asia-Pacific).
Upon completion of the proposed exercise, Vallianz’s controlling shareholders of Swiber Holdings and Rawabi Holding Company will have their respective shareholdings diluted from 20.9% to 20.2% and 15.5% to 15%.