Malaysian Bulk Carriers (Maybulk) will finance a fund raising move by its associate company PACC Offshore Services Holdings (Posh), which provides offshore marine services, Seatrade Asia online reports.
Singapore-based Posh is seeking to raise $150m from the sale of redeemable convertible preference shares at an issue price of $4 per share.
Kuala Lumpur-listed Maybulk announced an intention to subscribe to the rights issue on a pro-rata basis, subscribing to 7.96 million shares based on its 21.23% stake in Posh for a total of $31.85m.
The proposed subscription is to part finance the Posh Group's investments in various projects and capital commitments, all of which are expected to contribute positively to Posh's future earnings. This will in turn contribute to Maybulk's overall performance in the future,” Maybulk said.
The tenure of the subscription will mature after five years.
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