KUALA LUMPUR: Shareholders have given Propel Global Bhd
the green light to proceed with all the resolutions tabled at its extraordinary general meeting (EGM), including the disposal of its remaining 70% equity interest in Propel Maxflo for RM17.24mil.
In a statement, the group said its 49%-owned subsidiary Propel Oilfield Services Sdn Bhd will dispose of its stake in Propel Maxflo to Reservoir Link Sdn Bhd, a wholly-owned subsidiary of Reservoir Link Energy Bhd, for a combination of RM13.79mil cash and 18.69 million new shares in Reservoir Link Energy at an issue price of 18.45 sen per share.
Also approved at the EGM was the proposed private placement of up to 146.7 million new shares, representing about 19.3% of the company's total issued share capital.
"The placement, which includes approved allocations to eligible directors, major shareholders and independent third-party investors, provides Propel Global with enhanced funding flexibility to support its operational and strategic priorities," said Propel Global.
The issue price will be determined at a later date, at a discount of not more than 10% to the five-day volume-weighted average market price prior to the price-fixing date.
In addition, shareholders approved the proposed reduction of the company’s issued share capital by RM65.5mil pursuant to Section 117 of the Companies Act 2016. The capital reduction will be applied entirely to offset accumulated losses, strengthening the group’s balance sheet without any cash outflow.
"Today’s EGM represent a significant step forward for Propel Global. With a clear mandate from our shareholders, we are now well-positioned to execute our strategic priorities, strengthen our financial foundation, and sharpen our operational focus.
She said Propel Global will continue to focus on streamlining its portfolio, reinforcing its balance sheet, and positioning the group for its next phase of execution amid an evolving industry landscape.
"These initiatives provide us with the flexibility and resilience needed to pursue sustainable growth while remaining disciplined in capital management,” said Propel Global executive director and group CEO Angeline Lee.
