Vallianz shareholders approve funding measures to raise up to $79.2m

Fresh funds to bankroll new corporate strategy.

SGX Catalist-listed offshore marine solutions services provider Vallianz Holdings Limited (Vallianz) has received shareholders’ approval for the grant of options to Swiber and the issuance of capital securities to Rawabi, two measures which the company said will strengthen its capital base.

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 $22.0 million, assuming that all options are exercised. Under the latter agreement, Rawabi will subscribe to $35.2 million 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.

Vallianz said the additional funding will pave the way for the Group to embark on new corporate strategy, which includes a fleet expansion plan; pursuing long-term charters, focusing on quality offshore marine vessels; and gaining greater access to a wider customer base in new and existing markets.

Commented Mr. Darren Yeo, Executive Director and Chief Executive Officer 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.

“We are pleased to have made a strong start, working in close partnership with our strategic investors, Rawabi and Swiber, two world class players in the industry. We will look for opportunities to tap on Swiber’s strong business network by providing long-term charters to third parties while our partnership with Rawabi will enable us to strengthen our position in the Middle East.

“Indeed, we are now one step closer to our goal of building ourselves as a global offshore marine support services company. We remain focused on enhancing shareholders’ value and any new business that we enter into will be synergistic with our current businesses of marine asset ownership, leasing and fleet corporate management.”