Vallianz delays EGM as Swiber wants in on rights issue
Swiber Holdings, a debt-burdened offshore oilfield services provider, is looking to take part in Vallianz Holdings’ right issue, despite being placed under judicial management.
The move has made Vallianz postpone its Extraordinary General Meeting which was expected to be held October 17, where a decision would be made on the rights issue.
Vallianz Holdings, Singapore-based offshore vessel owner, is looking to issue up to 3.6 billion new ordinary shares through a proposed rights cum warrants issue, at a price of S$0.020 per share.
The company said the aim was to raise funds needed to repay bank loans, secure working capital, and repay some advances made to Vallianz by Rawabi Holding Company Limited. Rawabi currently holds 18.71 percent shares in the company.
Swiber, owning 25.15 percent shares in Vallianz, wants to take part in the rights issue.
In a letter sent to the offshore shipping firm, Swiber said it was entitled to take shares worth up to a total subscription amount of approximately S$18.1 million.
Swiber, however, expects Vallianz to give away shares in exchange for a part of debt Swiber claims Vallianz already owes it.
Noting Swiber’s move, Vallianz said the two firms have not entered into any such agreement as mentioned by Swiber in its rights issue assertion.
Vallianz on Thursday said it would, to provide sufficient time for shareholders to consider the recent developments, postpone the EGM originally scheduled to be held on Monday, 17 October 2016, until further notice.