Saudi Arabia’s Rawabi, which presently owns 672m shares in Vallianz or 15.6% share capital, has agreed to undertake to subscribe for the excess rights in the proposed rights cum warrants issue for the set-off and settlement of $102.1m owing by Vallianz to Rawabi.
The completion of the proposed conversion of Rawabi’s advances to Vallianz could result in Rawabi becoming the single largest shareholder of Vallianz, Singapore-listed Vallianz mentioned in a statement. Currently, bankrupt Swiber is the largest shareholder of Vallianz controlling approximately 20.9% stake.
“Our decision to increase our stake in Vallianz reflects our unwavering confidence in the group’s business and prospects. As a strategic shareholder and partner, Rawabi is committed to working with Vallianz to sustain and grow the group’s offshore marine services business over the long term,” said Sheikh Abdulaziz AlTurki, group chairman of Rawabi.
Vallianz has also entered into a separate set-off and settlement agreement with Swiber to convert net payables to the latter of $36.6m into shares in Vallianz’s capital.
Ling Yong Wah, ceo of Vallianz, said: “The signing of the set-off and settlement agreement with Swiber represents a critical step in the restructuring efforts of the company. It provides clarity on the intention of both parties to move forward with a planned resolution on the net payables issue.
“By fulfilling the group’s financial obligations towards Rawabi and Swiber using equity, we will be able to conserve our cash resources for working capital and strengthen the group’s equity base,” Ling added.
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