KUALA LUMPUR, Malayan Banking Bhd (Maybank) has officially become a substantial shareholder in offshore oil and gas services provider Alam Maritim Resources Bhd, following the completion of a debt settlement exercise.
In a filing with Bursa Malaysia on Tuesday, Maybank disclosed that it, together with its wholly owned subsidiary Maybank Islamic Bhd, has been issued a total of 85.38 million new ordinary shares in Alam Maritim. The issuance, priced at 27.83 sen per share, represents a 19.16% equity stake in the company. The new shares were allotted pursuant to a scheme of arrangement under Section 366 of the Companies Act 1966, which was part of the settlement plan for outstanding liabilities.
As part of the same settlement, Maybank also received 21.34 million free detachable warrants in Alam Maritim, on the basis of one warrant for every four settlement shares subscribed. These warrants, referred to as “settlement warrants,” further enhance Maybank’s potential equity exposure to Alam Maritim should they be exercised in the future.
The restructuring exercise, involving both Alam Maritim and its wholly owned subsidiary Alam Maritim (M) Sdn Bhd, was undertaken to resolve debts owed to creditors. By converting liabilities into equity and warrants, the company aims to strengthen its balance sheet while ensuring business continuity in a challenging offshore and marine services environment.
Following the share issuance, as at Aug 29, Maybank’s direct shareholding stood at 5.57 million shares, while its indirect holding through Maybank Islamic amounted to 79.81 million shares. Collectively, this cements Maybank’s position as one of Alam Maritim’s key substantial shareholders.
The move underscores Maybank’s increasing involvement in corporate restructuring exercises, particularly in sectors that have faced prolonged headwinds, such as oil and gas support services. For Alam Maritim, the debt-to-equity conversion provides a crucial lifeline, reducing financial obligations while bringing a strong institutional shareholder into its fold.
Market observers note that the participation of a major financial institution like Maybank could help restore investor confidence in Alam Maritim, which has faced liquidity and operational challenges in recent years amid volatility in the offshore oil and gas industry.
