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EA Technique Shareholders Approve Regularisation Plan, To Receiving RM79.6 Mil to Strengthen Financial Position

KUALA LUMPUR: EA Technique (M) Bhd (EATech) shareholders have approved the issuance of up to 795,750,000 shares and the exemption for Datuk Wira Mubarak Hussain Akhtar Husin and Voultier Sdn Bhd (VSB) from the obligation to undertake a mandatory take-over offer at the extraordinary general meeting (EGM) held on 24th June 2024.

The shareholders’ approval marks a pivotal step in EATech’s efforts to regularise its financial status.

The share issuance will raise RM79.6 million for the company, representing approximately 60.0 per cent of the enlarged share capital.

Following this corporate exercise, VSB will emerge as the largest shareholder with a 51% stake in EATech.

VSB is 70 per cent owned by Wira Mubarak and 30 per cent held by Kinergy Advancement Bhd executive deputy chairman and group managing director Datuk Lai Keng Onn.

EATech is a Bursa Malaysia main market-listed prominent marine transportation and offshore storage company.

EATech chief executive officer Nasrul Asni Muhammad Dain said the company deeply appreciates the shareholders’ support and the confidence VSB has shown in EATech’s enduring vision.

“This strategic investment underscores their faith in our ability to make strides towards potential in the marine transportation and offshore storage sector.

“The provided capital will solidly back a healthy our regularisation strategy and catalyse future growth,” he said in a statement.

He said that upon successfully completing the proposed regularisation plan, EATech’s immediate strategic priority is to expediently uplift the PN17 status to reaffirm EATech as a resilient and thriving entity.

“Our turnaround plan was a pivotal milestone in demonstrating our sustained profitability over 7 consecutive quarters from the third quarter (Q3) of 2022 to the first quarter (Q1) of 2024,” he said.

Described as ‘white knights’ entering EATech, Wira Mubarak and Lai’s vast experience positions them to bring valuable resources to the company.

Wira Mubarak said he and Lai recognise the immense potential in EATech.

“VSB is here for the long haul. Our goal is to expand the company and deliver substantial value to our shareholders.

“By leveraging our resources and expertise, we aim to strengthen the essential core of EATech’s current business.

“We aim to transform its vision into a leading entity in the marine transportation and offshore storage industry, thereby enhancing shareholder value along the way,” Wira Mubarak said.

The proceeds from the shares issuance are earmarked for the company’s financial obligations, namely RM31.0 million for scheme creditors, RM26.0 million for Sindora, and RM19.7 million for general working capital over the next 24 months.

EATech expects to recognise a one-off net income of approximately RM127.4 million from the debt waivers, significantly improving financial health with a net tangible asset (NTA) increasing from RM57.4 million to RM261.6 million.

“With the national oil company Petroliam Nasional Bhd (Petronas) planning significant investments in exploration, development and production, EATech is well-positioned to benefit from increased demand for its services,” Wira Mubarak added.

EATech’s marine transportation activities involve transporting petroleum products, light cargoes, and personnel using various charter arrangements, including time charters, bareboat charters, and spot charters.

The company operates 26 vessels, including product tankers, offshore support vessels (OSVs), and a floating storage and offloading (FSO) vessel.

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