TH Heavy Engineering to use $42.4m for FPSO conversion

Kula Lumpur: Malaysian offshore service provider TH Heavy Engineering is planning to use RM152m ($42.4m) from RM300m to be raised from its proposed rights issue for the conversion of an FPSO.

TH Heavy Engineering said on Wednesday in its circular to shareholders that it would raise RM300m ($83.6m) via the rights issue of up to 1.2bn Islamic irredeemable convertible preference shares.

RM152m will be used for the conversion of its FPSO Layang after it secured a contract from JX Nippon. Another RM13.2m would be used to upgrade its Pulau Indah fabrication yard. RM50m of the proceeds would be used to lower its debt, while about RM50m to RM75.3m will be used to replenish working capital.

Jason Jiang

Jason is one of the most prolific writers on the diverse China shipping & logistics industry and his access to the major maritime players with business in China has proved an invaluable source of exclusives. Having been working at Asia Shipping Media since inception, Jason is the chief correspondent of Splash and associate editor of Maritime CEO magazine. Previously he had written for a host of titles including Supply Chain Asia, Cargo Facts and Air Cargo Week.
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