Rawabi to invest US$10m in Swiber's subsidiary

RAWABI Holding Company, an oil and gas conglomerate in Saudi Arabia, on Monday signed an agreement committing a US$10 million investment into a new, wholly-owned subsidiary of debt-laden offshore and marine group Swiber Holdings.

The new subsidiary will be incorporated in Singapore, and Rawabi's share will constitute approximately but no less than 80 per cent of the new company's enlarged total issued shares.

Rawabi has also committed to pursue an initial public offering of the new company's shares.

As part of the agreement, Rawabi will also invest US$190 million in Swiber's existing wholly-owned subsidiary Equatoriale Energy.

This comes six months after Swiber and Rawabi entered into a binding term sheet for a US$200 million cash investment in June 8.

Swiber shares have been suspended since 2016.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL