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Rawabi increases Vallianz stake to 41% following warrant cum rights issue

VALLIANZ Holdings announced on Wednesday that it has completed its rights cum warrants issue with Rawabi Holding Company Limited (Rawabi) emerging as its largest single shareholder, now holding 41.2 per cent of shares in the company.

With the enlarged share base, Rawabi, a controlling shareholder and strategic partner of Vallianz, had increased its ownership in Vallianz from 14.8 per cent.

In total, Rawabi subscribed for its pro rata entitlement of 672 million rights shares with 1.34 billion warrants, and 2.37 billion excess rights shares with 4.45 billion warrants.

"As Rawabi will be exercising most of its warrants, its shareholding in Vallianz will increase further to 57.2 per cent, assuming the judicial managers of Swiber Holdings also exercises its warrants and other shareholders do not exercise," the provider of offshore support vessels (OSVs) in the Middle East said in a filing with the Singapore Exchange after the market closed.

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The total value of Rawabi's subscription in Vallianz amounted to approximately S$48.7 million, which will offset against the advances from Rawabi, the company added.

Moreover, the subscription amount of approximately S$93 million from exercising most of the warrants by Rawabi will also be offset against all remaining advances owed to Rawabi by Vallianz.

Meanwhile, Swiber's shareholding in Vallianz will increase to 21.7 per cent assuming that shareholders other than Rawabi do not exercise their warrants.

With the completion of the issue, Vallianz has set into motion the respective set-off and settlement agreements with Rawabi and Swiber.

Sheikh Abdulaziz Al-Turki, Rawabi's group chairman, said: "Rawabi remains confident of Vallianz's business and prospects over the long term."

"As its largest shareholder and strategic partner, we will continue to support the group and ensure that it is in a strong position, both financially and operationally, to execute its long-term growth plans."

Ling Yong Wah, Vallianz's CEO, added: "The rights cum warrants issue clears the path for the group to resolve the outstanding issue with Swiber and also strengthen our balance sheet. We see exciting opportunities for Vallianz to further expand our business by leveraging our leading market position as one of the largest OSV players in the Middle East."

Vallianz shares finished S$0.001 or 7.1 per cent down at S$0.013 on Wednesday.