Puma Energy to launch US$1.1b rights issue

Geneva

PUMA Energy, the fuel retailer and storage firm whose biggest shareholder is trading house Trafigura Group, said it is launching a US$1.1 billion rights issue.

The Singapore-based company, which is restructuring and selling assets after posting annual losses, said the funds from the issue will be used to repay a 2018 term loan facility.

The proceeds of the rights offering will "provide a sound financial basis allowing the company to continue to deliver the five-year strategic plan", Puma said in a statement on Tuesday.

Trafigura, which owns 55.6 per cent of Puma's shares, has indicated support for the rights issue and will take up the shares offered to it, Puma said. Sonangol, Angola's state oil producer, is in the process of selling its 31.5 per cent stake and will not participate.

Puma lost US$753 million in 2019 and US$250 million in its fiscal 2020 third quarter. The company has struggled after an asset spending spree, currency-related losses and impairments in some of its major retail markets in Africa and South America.

The rights issue is expected to close around mid-April, Puma said. BLOOMBERG