Vallianz seeks fresh funds of up to $71.5 million from two investors

CATALIST-LISTED Vallianz Holdings is raising fresh funds of up to $71.5 million from two investors.

The offshore marine solutions provider said on Thursday that it has entered into a subscription agreement with Saudi Arabian oil and gas company Rawabi.

Rawabi will subscribe for redeemable convertible capital securities issued by Vallianz for US$35.2 million.

Separately, Vallianz also entered into an option agreement with offshore services firm Swiber Holdings yesterday.

It will issue Swiber 500 million non-transferable share options at 5.5 cents apiece, which could raise gross proceeds of $27.5 million if all the options are exercised.

The deadline for exercising the options is Oct 2, 2015, two years from the options' date of issue.

The exercise price is a 7.22 per cent discount to the volume weighted average price of Vallianz' shares on Monday, its last full trading day before the agreement was inked.

Chief executive and executive director of Vallianz, Mr Darren Yeo, said in a statement: "These investments by Rawabi and Swiber, both of which are strong and strategic investors, demonstrate a firm confidence in Vallianz' growth prospects.

"With an enlarged share capital and further alignment of our business interests, it will also pave the way for new business opportunities and future growth."

The proceeds from the issue of capital securities and options exercised will be used for general working capital purposes and capital expenditure relating to fleet expansion, said Vallianz.