Dayang to issue new shares, restructure debt

Dayang Enterprise Holdings Bhd plans to issue up to 192.96 million new shares in conjunction with the restructuring of its debt which includes a proposed sukuk issuance.

In an exchange filing last Friday, the oil and gas (O&G) service provider stated it is proposing a rights issue of up to 96.48 million new shares which could raise as much as RM77.18 million in gross proceeds assuming an issue price of 80 sen per share.

90.7% or RM70 million of the proceeds is earmarked for the repayment of bank borrowings, while key shareholders have agreed to take up 51.59% of the undertaking.

The company is also planning a private placement of up to 96.48 million shares to third party investors, potentially raising RM109.99 million on a RM1.14 issue price. RM75 million of this will be for the build-up of a sinking fund for the proposed RM682.5 million sukuk issuance.

Lastly, the company intends to subscribe to new redeemable convertible preference shares in its 60.48%-owned subsidiary, Perdana Petroleum Bhd, which will raise between RM455 million and RM506 million in funds.

This in view of helping Perdana Petroleum settle its existing loan commitments and borrowings.

Dayang added that the exercises are geared at restructuring its debt to leverage on the pick up in activity levels in the O&G industry. — TMR