SHAREHOLDERS of EA Technique (M) Bhd (EATech), a Main Market-listed marine transportation and offshore storage outfit, have approved at its extraordinary general meeting (EGM) held today (June 24) an issuance of up to 795.70 million new shares and the exemption for Datuk Wira Mubarak Hussain Akhtar Husin and Voultier Sdn Bhd from the obligation of having to undertake a mandatory take-over offer.
The approval marks a pivotal step in EATech’s efforts to regularise its financial status. The proposed shares issuance will raise RM79.6 mil or 60% of the company’s enlarged share capital.
Following this corporate exercise, Voultier will emerge as the largest shareholder with a 51% stake in EATech. Voultier is jointly owned by Mubarak (70%) and Datuk Lai Keng Onn who is also the group managing director of Kinergy Advancement Bhd (previously Kejuruteraan Asastera Bhd).
“We are deeply appreciative of the shareholders’ support and the confidence Voultier has shown in EATech’s enduring vision,” commented EATech’s CEO Nasrul Asni Muhammad Dain.
“This strategic investment underscores their faith in our ability to making strides towards potential in the marine transportation and offshore storage sector. The provided capital will solidly back a healthy our regularisation strategy and catalyse future growth.”
Upon the successful completion of the proposed regularisation plan, EATech’s immediate strategic priority is to expediently uplift its PN17 (Practice Note 17) status to reaffirm the group as a resilient and thriving entity.
“Our turnaround plan was a pivotal milestone in demonstrating our sustained profitability over seven consecutive quarters from 3Q 2022 to 1Q 2024,” enthused Nasrul.
Described as “white knights entering EATech”, the vast experience of both Mubarak and Lai would position them favourably in terms of bringing valuable resources into EATech.
“My comrade and partner Datuk Lai recognise EATech’s immense potential. Voultier is here for the long haul,” asserted Mubarak.
“Our goal is to expand the company and deliver substantial value to our shareholders. By leveraging our resources and expertise, we aim to strengthen the essential the core of EA Technique’s current business.”
Added Mubarak: “We aim to transform EATech’s vision into a leading entity in the marine transportation and offshore storage industry, thereby enhancing shareholder value along the way.”
The proceeds from the shares issuance are earmarked for the company’s financial obligations: RM31.0 mil for scheme creditors; RM26.0 mil to re-pay creditor Sindora Bhd and RM19.7 mil for general working capital over the next 24 months.
EATech expects to recognise a one-off net income of about RM127.4 mil from the debt waivers which will significantly improve the group’s financial health with NTA (net tangible asset) increasing from RM57.4 mil to RM261.6 mil.
With PETRONAS planning significant investments in exploration, development and production, EATech is well-positioned to benefit from increased demand for its services.
EATech’s current marine transportation activities involve transporting petroleum products, light cargoes, and personnel using various charter arrangements, including time charters, bareboat charters and spot charters.
The group operates 26 vessels, including product tankers, offshore support vessels (OSVs), and a floating storage and offloading (FSO) vessel.
At 4.46pm, EATech was up 1 sen or 2.86% to 36 sen with 7.87 million shares traded, thus valuing the company at RM191 mil. – June 24, 2024
