PETALING JAYA: EA Technique
(M) Bhd will see Tan Sri Abdul Rashid Abdul Manaf via Eco Offshore Services Sdn Bhd taking a 53% equity stake in the company for RM53mil.
This move is a part of EA Technique’s two phased regularisation plan which starts with the consolidation of 15 EA Technique shares into one followed by a proposed issuance of 53 million new shares, at RM1.13 per share, representing 60% of the enlarged share issuance to new shareholders.
A former chairman of Eco Offshore Services Sdn Bhd, Abdul Rashid was re-designated as the founder of the company in March 2015.
He is also the founder and substantial shareholder of Eco World Development Group Bhd as well as the chairman of Salcon Bhd.
The subscribers to the new EA Technique shares will also include Tan Sri Abdul Halim Ali, the former chairman of MBSB Bank Bhd, and Khiruddin Ibrahim Said, a director and shareholder of several private entities, who will each buy a 3.5% stake in EaTech.
Upon completion of the proposed shares issuance, Abdul Rashid will be obliged to extend a mandatory general offer (MGO) for the remaining EA Technique shares, at RM1.13 per piece.
However, in a filing with Bursa Malaysia yesterday, EA Technique stated the offerors intend to maintain the company’s listing status.
EA Technique’s current shareholders Sindora Bhd and Kulim (M) Bhd have given their undertaking not to accept the MGO while Abdul Halim and Khiruddin will do the same, the filing noted.
Of the RM60mil raised from the new share issue, RM32mil will be used for repayment to creditors while RM26mil will be utilised to repay Sindora.
Predominantly an owner and operator of marine vessels, EA Technique had slipped into PN17 status in February last year when its shareholders’ equity, as at Dec 31, 2021, of RM5.96mil was less than 50% of its share capital of RM179.8 million.
In a filing with Bursa Malaysia yesterday, EA Technique’s auditors, Ernst & Young PLT, found the company’s liabilities had exceeded its assets and expressed concern about EA Technique’s ability to continue as a going concern for the year ended Dec 31, 2020 (FY20).
For FY20, EA Technique registered a net loss of RM105.5mil. The group’s current liabilities for that period exceeded its current assets by RM393.3mil.
For FY21, EA Technique reported a higher net loss of RM150.6mil with its current liabilities exceeding its current assets by RM405.3mil.
As part of its scheme with creditors, EA Technique was to dispose of five vessels, namely Nautica Batu Pahat, Nautica Renggam, Nautica Kota Tinggi, Nautica Maharani, and Nautica Muar to raise RM105.8mil.
The group expects there will be RM46mil left of the proceeds generated from its assets disposal programme, after netting the expenses for its business expenditure, capital expenditure, and transaction costs and expenses in divesting its assets.
As of February this year, the disposal of the five vessels except Nautica Muar has been completed.
EA Technique noted that it has received an offer for Nautica Muar and is currently in talks with the buyer.
As part of its settlement to its creditors, EA Technique will only be able to pay 30% of its accumulated debt of RM257.1mil.
