Perisai given till end-July to submit draft circular on settlement agreement

PETALING JAYA: Financially troubled Perisai Petroleum Teknologi Bhd has until the end of this month to submit a draft circular on the sale of a 51% stake in SJR Marine Ltd to Emas Offshore Ltd (EOL), a subsidiary of Ezra Holdings Ltd, under a settlement agreement between Perisai and EOL.

Ezra Holdings is also a major shareholder of Perisai, with a 23.59% stake, which has filed for bankruptcy in the US.

Perisai’ share price fell a further half a sen to close at 4.5 sen yesterday on the news, with some 180,000 shares traded.

The two companies had agreed on a US$43.03 million (RM185 million) price tag for the stake. Of this, US$20 million is to be paid in cash upon completion of the deal, and the remaining US$23.03 million in deferred payments at an interest of 1% a year.

The US$20 million partial payment is crucial to ensure the success of the Practice Note 17 company’s debt restructuring plan, and as general working capital for operational, corporate and restructuring expenses.

The settlement agreement dated Dec 23, 2016, is in connection with disputes over the share sale agreement dated Nov 30, 2012 between Perisai and EOL and/or the put option rights of Perisai on SJR Marine. This is its third extension.

A draft circular on the agreement was to have been submitted to Bursa Malaysia two months after the approval of the corporate proposal.