PETALING JAYA: Vantris Energy Bhd’s proposed regularisation plan (PRP) is advancing, with the group on track to complete its restructuring within the stipulated timeframe, according to BIMB Research.
Recall that the oil and gas company had proposed to undertake two corporate exercises, including a debt restructuring practice to reduce its borrowing from RM10.8bil to RM5.6bil, and a fundraising from the Finance Ministry (MoF) Incorporated amounting to RM1.1bil.
According to BIMB Research, the group has secured both shareholders’ approval and the Securities Commission’s approval for the mandatory general offer exemption for MoF Inc, which would otherwise have been triggered by its higher stake following the PRP.
On a side note, Vantris’ recapitalisation exercise will comprise the issuance of RM1.36bil settlement shares set at 80 sen per share to offset the RM1.1bil debt, as well as the issuance of RM1.7bil redeemable convertible unsecured Islamic debt securities amounting to RM2bil to multi-currency financing lenders.
The group noted that the fundraising will be carried out through the issuance of redeemable convertible loan stock at 48 sen per share, further boosting its balance sheet position.
BIMB Research explained in a note to clients that the proposed debt restructuring will generate a sizeable gain of approximately RM2.4bil mainly from debt waiver.
