PETALING JAYA, Creditor banks including Malayan Banking Bhd (Maybank), CIMB Group Holdings Bhd, and RHB Bank Bhd are set to record earnings gains from the restructuring of Vantris Energy Bhd, formerly known as Sapura Energy Bhd.
Maybank ended up with a 20.27% stake in Vantris Energy following the execution of its restructuring scheme.
The oil and gas services provider recently completed its regularisation plan to exit Practice Note 17 (PN17) status, which saw Maybank, CIMB, and RHB emerge as major shareholders of the rebranded company.
In a research note, MBSB Research estimated that the restructuring could contribute as much as 2.3% to the creditor banks’ earnings in the current financial year. It said the banks are expected to recognise contributions from settlement shares, which were issued at 80 sen apiece.
Based on Vantris’ current market price of 53 sen per share, MBSB calculated that the proceeds translate into an uplift of between 1.5% and 2.3% of net profit this year.
The research house added that Maybank is expected to enjoy the “largest absolute impact” as it emerged with a 20.27% stake in Vantris following the restructuring.
In a filing with Bursa Malaysia last Friday, Maybank disclosed that Vantris had issued 462.45 million new shares and 498.48 million redeemable convertible unsecured Islamic debt securities (RCUIDS) to the bank and its subsidiary Maybank Islamic Bhd. This issuance formed part of the settlement of liabilities owed by Sapura TMC Sdn Bhd, a wholly owned subsidiary of Vantris.
Similarly, CIMB Group revealed that its subsidiaries also received securities under the exercise. CIMB Bank Bhd was allotted 208.93 million shares and 225.21 million RCUIDS, while CIMB Islamic Bank Bhd received 67.73 million shares and 73.01 million RCUIDS. Combined, CIMB now holds a 12.13% stake in Vantris.
Meanwhile, RHB Bank Bhd announced that its subsidiary, RHB Islamic Bank, was issued 164.56 million shares and 177.39 million RCUIDS, giving the group a 7.21% indirect stake in Vantris.
MBSB noted that other listed creditors, such as AMMB Holdings Bhd (AMMB), did not make announcements, likely because their holdings fell below the 5% threshold required for disclosure.
Exit from PN17
Vantris, which slipped into PN17 status in 2022 due to financial distress, obtained regulatory approval in June for its regularisation plan.
The plan includes a 99.99% capital reduction to offset accumulated losses and a 20-to-one share consolidation to streamline the number of shares in circulation.
It also involves a large-scale debt restructuring exercise that will slash total borrowings from RM10.8 billion to RM5.6 billion, reducing annual interest expenses by more than RM500 million, or about 60%.
Additionally, the Ministry of Finance, via Malaysia Development Holding Sdn Bhd (MDH), will inject RM1.1 billion through redeemable convertible loan stocks (RCLS). Proceeds from this subscription will go towards settling outstanding debts owed to Malaysian oil and gas vendors.
Upon full conversion of the RCLS, MDH could emerge as Vantris’ single largest shareholder with a stake of more than 33%, overtaking Permodalan Nasional Bhd (PNB), whose shareholding may be diluted to just above 5%.
Vantris’ shares closed 3.5 sen higher, or 6.6%, at 56 sen yesterday, valuing the company at RM1.29 billion.
