Shareholders approve Vallianz expansion plans

Singapore: Vallianz Holdings, an offshore marine solutions provider, is set to further strengthen its capital base with a vote of confidence from shareholders.
 
The group has received shareholders’ approval for the grant of options to Swiber and the issuance of capital securities to Rawabi. Shareholders have also endorsed its diversification into the area of sourcing and supplying of vessels and equipment and additional shipping-related services to the offshore oil and gas industry.
 
Under the option agreement, Swiber will be issued an aggregate of 500,000,000 non-transferable share options, which could raise gross proceeds of $22m, assuming that all options are exercised. Under the latter agreement, Rawabi will subscribe to $35.2m of capital securities, which could be converted to 800,000,000 Vallianz shares.
 
The total proceeds of $57.2 million, which could be raised from the issue of the option shares, as and when the options are exercised by Swiber, and the proceeds from the issue of capital securities to Rawabi, is intended to be used for capital expenditure relating to future fleet expansion and general working capital purposes.
 
Commented Darren Yeo, executive director and CEO of Vallianz: “We are delighted to have received blessings from our shareholders at our EGM to proceed with the funding exercise which will further strengthen our capital base. This is in line with our current plan to deepen our capital structure, including exploring Islamic financing through a Sukuk programme.
 
“With the additional funding, we are well poised to embark on our new corporate strategy and future plans which include an expansion plan to double our existing fleet by 2016, focusing on long-term charter. We will also look into widening our customer base in both new and existing markets through an expansion of asset portfolio and services.”  [12/12/13]

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