Scomi announced the entry of Subramaniam Pillai as a major shareholder
January 15, 2024
PN17 exit plan: Scomi announced the entry of Subramaniam Pillai as a major shareholder
Scomi also proposed changing its name to Richfield (M) Bhd, and diversifying its main activities to include the construction business.
KUALA LUMPUR: Scomi Energy Services Bhd, which has a PN17 status, canceled plans to buy the assets of a marine operator, instead announcing a new proposal to change its financial position that includes its diversification into the construction business and the entry of a new major shareholder.
The group has proposed a share consolidation, which would see its issued share capital reduced from RM445.535 million to RM35,000 by canceling RM445.5 million of its share capital, followed by the consolidation of every 20 existing shares to be consolidated.
Scomi Energy proposed to follow it up with a private placement of 35.125 million new shares, representing 60% of its issued shares which were enlarged at 22 sen per placement share, to Datuk Seri Dr Subramaniam Pillai Sankaran Pillai, Founder and Executive Director of Dhaya Maju Infrastruktur Group (Asia ) Sdn Bhd (DMIA), under the agreement executed between Scomi and him on Friday.
Scomi will then receive a RM140.03 million contract from DMIA for the proposed construction and maintenance to upgrade stations and facilities under the Klang Valley Electric Double Track Phase 2 Project, through the Richfield unit owned by the Richfield (M) Sdn Bhd group.
"This contract is facilitated through a chain of subcontracts with an award letter dated 29 July 2022 (main contract) from the Ministry of Transport to Dhaya Maju Ltat Sdn Bhd.
"Following that, DMLTAT subcontracted the project to DMIA, which in turn subcontracted to Richfield Construction," said Scomi Energy in a notification on Bursa Malaysia.
Scomi which is an Oil and Gas Services Group also proposed changing its name to Richfield (M) Bhd, and diversifying its main activities to include the construction business.
HOA with Ambassador Marine ends
In a separate filing on Bursa Malaysia, Scomi Energy said the Master Agreement (HOA) signed with Duta Marine Sdn Bhd in August last year "has been automatically terminated due to the unsigned definitive agreement within the exclusivity period".
The two sides aim to enter into an agreement "aimed at setting a broad framework for further discussions leading to the signing of a definitive agreement" that includes two alternatives.
Under the first alternative, Duta Marine will dispose of certain assets, including one or more of its subsidiaries, to Scomi Energy in exchange for shares and/or cash.
Duta Marine's assets include a 51% stake in Duta Pacific Offshore Sdn Bhd, which owns vessels and provides marine vessel charter services.
The second alternative would see both parties enter into any other arrangement "as mutually agreed".
Scomi fell into PN17 status in January 2020 when its consolidated shareholders' equity plunged below 50% of its issued share capital.
Scomi Energy's shares have been suspended since July last year after it failed to submit a turnaround plan on time to Bursa Securities. It last traded at 0.5 cents per share.