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Swiber shareholders give nod to rights cum warrants issue in agreement with Vallianz

SHAREHOLDERS of Swiber Holdings have given the green light to the proposed rights cum warrants issue as set out in the company's set-off and settlement agreement with Vallianz Holdings.

The judicial managers of Swiber told the Singapore Exchange on Thursday that all ordinary resolutions were duly passed at the extraordinary general meeting on the same morning.

The agreement - first entered into by both Swiber and Vallianz on May 24, and later amended on Nov 6 - is aimed at fully offsetting and settling the US$36.6 million sum owed by Vallianz to Swiber as at Dec 31, 2016.

Through the rights cum warrants issue, Vallianz's net owings of US$36.6 million to Swiber will be converted into shares in Vallianz's capital.

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Any balance net payables to Swiber following the latter's subscription of any rights shares with warrants and any exercise of these warrants will be settled through new equity in the future.

The new right shares will be issued on the basis of one rights share at the issue price of 1.6 Singapore cents each, for every one share held by a shareholder.

Each rights share comes with two free detachable warrants, and each warrant carries the right to subscribe for one new share at the exercise price of 1.6 Singapore cents apiece.

Both the issue price and the exercise price have been revised from the two Singapore cents initially announced in May.

For Swiber's undertaking to subscribe for additional new shares if there are any unutilised owings by Vallianz, the issue price for each of the additional new shares will also be 1.6 Singapore cents.

Swiber, which is under judicial management, owns 20.17 per cent of Vallianz.