As the value of the company is tied to the performance of the company, it is in the interest of the warring shareholders to argue and fight outside the company.
KUALA LUMPUR: Globaltec Formation Bhd has secured an investment for a 51% stake in its Australian-listed subsdiary, NuEnergy Gas Ltd, from Saujana E&P Sdn Bhd via a share placement valued at A$38.52mil (RM111.4mil).
The proposed placement will see Saujana E&P taking up 1.54 billion new NuEnergy shares or a 51% stake in the enlarged share capital of the company at a placement price of 2.5 Australian cents each.
Globaltec said in a stock exchange filing that NuEnergy will cease to be a subsidiary of the group and will instead be treated as an associated company following the dilution of its interest the company.
Upon completion of the proposed share placement, the group's direct and effective interest in NuEnergy will be reduced from 64.7% and 51.7% to 31.7% and 25.4% respectively.
"Although the Proposed NuEnergy Placement will result in a dilution of more than 25% shareholding in the principal subsidiary, the Board of Directors of GFB is of the opinion that the Proposed NuEnergy Placement will enable fresh new funds into the Energy segment of the Group and will facilitate and expedite the development and commercialisation of the unconventional gas production of the Energy segment and thus enabling, realising and expediting future income accretion to the Group," said the group.
The proceeds from the proposed placement will be directed towards fulfilling the work and firm commitments of the South Sumatra production sharing contracts and executing the plan of development for the Tanjung Enim PSC.
The proposed placement is subject to the approval of the shareholders of Globaltec and NuEnergy.
In FY18, NuEnergy recorded a loss before tax of A$13.5mil due to higher impairment losses on exploration and evaluation assets of A$11.4mil.
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