PROPEL GLOBAL BERHAD announced that during its Extraordinary General Meeting shareholders have approved the proposed disposal by Propel Oilfield Services Sdn Bhd, a 49.0%- owned subsidiary of the Company, of its remaining 70.0% equity interest in Propel Maxflo Sdn Bhd to Reservoir Link Sdn Bhd, a wholly-owned subsidiary of Reservoir Link Energy Berhad, for a total consideration of RM17.24 million.
The group said the consideration will be satisfied through a combination of RM13.79 million in cash and the issuance of approximately 18.69 million new ordinary shares in Reservoir Link Energy Berhad at an issue price of RM0.1845 per share. The cash proceeds will be utilised in accordance with the purposes outlined in the Company’s circular to shareholders.
Shareholders also approved the proposed private placement of up to 146.7 million new ordinary shares, representing approximately 19.3% of the Company’s total issued share capital. The placement, which includes approved allocations to eligible directors, major shareholders and independent third-party investors, provides Propel Global with enhanced funding flexibility to support its operational and strategic priorities.
The issue price will be determined at a later date, at a discount of not more than 10% to the five-day volume-weighted average market price prior to the price-fixing date.In addition, shareholders approved the proposed reduction of the Company’s issued share capital by RM65.5 million pursuant to Section 117 of the Companies Act 2016.
It noted that capital reduction will be applied entirely to offset accumulated losses, strengthening the Group’s balance sheet without any cash outflow
