CLIQ Energy is buying a 51% stake in Phystech II Joint Stock Company from Phystech Firm LLP. The photo shows Phystech's manifold and testing facility at an oil field in Kazakhstan.
KUALA LUMPUR: CLIQ Energy Bhd, which is paying US$117.3mil (RM496.6mil) for a 51% stake in a company that operates two oil field assets in Kazakhstan, has proposed a rights issue with warrants to raise gross proceeds of no less than RM210mil.
The special-purpose acquision company said this was to address the potential cash shortfall in its trust account to satisfy the cash payment which might arise following the company’s potential repurchase of CLIQ shares held by dissenting shareholders who required it to buy their CLIQ shares, and as a result of the strengthening of the US dollar against the ringgit.
It is assumed that dissenting shareholders hold up to 25% of the total value of CLIQ shares. (For the acquisition to go through, the company needs to get 75% of the shareholders voting in favour.)
As at Sept 13, there was RM351.2mil (US$83.3mil) in the trust account, the company said.
CLIQ told Bursa Malaysia it proposed to make a renounceable rights issue of new CLIQ shares together with free detachable warrants B to CLIQ shareholders on an entitlement date to be determined later based on the minimum subscription level to raise minimum gross proceeds of RM210mil.
CLIQ board plans to fix the issue price at a discount of at least 30% to the theoretical ex-rights price of its shares immediately preceding the price-fixing date but the price will not be lower than the par value of one sen each.
Of the RM210mil gross proceeds, CLIQ plans to use RM138.4mil to pay the potential shortfall amount due to the potential share repurchase and currency movements, and RM65.8mil for additional financial commitment (working capital).
The company said the proposed acquisition and the other proposals were expected to be completed by end-March 2016.
CLIQ shares have risen 4.5% since a month ago, and closed at 69 sen on Thursday, up 1 sen from the previous day.
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