Vallianz attracts strategic investorsCompany News // October 3, 2013
Vallianz Holdings Limited, the integrated offshore marine solutions provider in the offshore oil and gas industry, has entered into a subscription agreement with Rawabi, a leading Saudi Arabian oil and gas service company, and an option agreement with Swiber.
Under the subscription agreement, Rawabi will subscribe for redeemable convertible capital securities issued by Vallianz for a principal amount of US$35.2 million. Under the option agreement, Swiber will be issued an aggregate of 500,000,000 non-transferable share options, which could raise gross proceeds of S$27.5 million, assuming that all options are exercised.
Darren Yeo, Executive Director and Chief Executive Officer of Vallianz, said: "We are pleased that Rawabi, a leading company which we have recently joined hands with for a partnership in the Kingdom of Saudi Arabia, has invested strongly in Vallianz.
Allianz said it was heartened to attract equity investment from existing shareholder and customer, Swiber.
“These investments by Rawabi and Swiber, both of which are strong and strategic investors, demonstrate a firm confidence in Vallianz’s growth prospects. With an enlarged share capital and further alignment of our business interests, it will also pave the way for new business opportunities and future growth.”
Recently, Vallianz’s order book was boosted to US$334.0 million through a new subsidiary in the Kingdom of Saudi Arabia, with an ongoing contract with an option to charter offshore support vessels to a leading oil company in the Middle East.
The new subsidiary is jointly owned by Rawabi. All the proceeds 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, will be used
for purposes as the directors may in their absolute discretion deem fit in the interest of the company. These include general working capital purposes and capital expenditure relating to future fleet expansion.