Swiber flags delay in US$200 million preference share subscription

LISTED offshore marine player, Swiber Holdings, is looking into its legal options pertaining to the delayed completion of a preference share subscription agreement for a US$200 million investment in its wholly-owned subsidiary, Swiber Investment Limited.

The listed parent company said AMTC Ltd, which entered into an agreement on June 9 to subscribe for 1,000 preference shares in Swiber Investment for US$200 million, has requested to postpone the completion of the transaction.

Both AMTC and Swiber had agreed that the completion would take place on June 29 following confirmation on June 25 from the former that it would make payment of the subscription price "so that such funds would be received by Swiber Investment on or prior to June 29", Swiber said in a Singapore Exchange announcement on Monday.

AMTC on June 27 informed Swiber Investment of the intent to further extend the completion date, but the latter refused any further extension.

Swiber Investment on July 2 sent a letter of demand to the subscriber pertaining to the non-payment of the subscription price. The wholly-owned subsidiary of Swiber has also engaged legal advisers to advise on the possible legal options.

Swiber said Swiber Investment is still in discussions with the subscriber in respect of the transaction.