Scomi to take units private via share swap

PETALING JAYA: Scomi Group Bhd is proposing to take its energy and engineering units private via a share swap scheme, as the group seeks to consolidate all its existing operations under one listed entity.

The plan, the group said, would strengthen its balance sheet in the midst of a challenging business environment and facilitate its future business expansion.

“This is the key to Scomi Group’s goal to develop new growth areas, namely, in renewables and chemicals,” it said in an emailed statement late yesterday.

Under the plan, Scomi Group will consolidate every two of its existing shares into one share. It will then issue seven bonus warrants for every 10 consolidated shares held.

Shareholders of Scomi Energy Services Bhd (SESB) and Scomi Engineering Bhd (SEB) will be offered the opportunity to swap their holdings for new Scomi Group shares.

Consequently, the listing status of both companies will be surrendered.

Both SESB and SEB will be wholly owned by Scomi Group under a members’ scheme of arrangement.

For every five shares held by SESB shareholders, they will receive three new Scomi Group shares.

Additionally, one Scomi Group warrant will be issued for every nine new Scomi Group shares issued to SESB shareholders for a total consideration of RM107.84mil.

This implies an offer price of 13.4 sen per SESB share.

Meanwhile, for every seven shares held by SEB shareholders, they will receive 10 new Scomi Group shares.

Additionally, one Scomi Group warrant will be issued for every 10 new Scomi Group shares issued to SEB shareholders for a total consideration of RM29.93mil.

This implies an offer price of 31.6 sen per SEB share.

“For SESB and SEB shareholders, the privatisation provides them the opportunity to realise value of their equity at a premium and participate in future growth of the new Scomi Group,” it said.

This will also provide Scomi Group with a broader shareholders base and higher shareholders spread. “The new group structure will provide shareholders direct access to the group’s business going forward,” it said.

The merger will also result in a reduction in administrative and operational expenses and dispense with the duplication that exists with three listed entities, as all businesses will be housed under one listed company.

The new group structure will provide shareholders direct access to the group’s business. Scomi Group Bhd