Scomi Energy Abandons Latest Regularization Plan That Included Entry of Founder Daya Maju as Major Shareholder

KUALA LUMPUR (July 10): Scomi Energy Services Bhd (KL: SCOMI) has decided not to go ahead with its regularisation plan announced in January, which included diversifying into construction and bringing in founders of Dhaya Maju Infrastructure (Asia) Sdn Bhd (DMIA) as major shareholders, ahead of the July 31 filing deadline.

Since entering Practice Note 17 (PN17) status four years ago, Scomi Energy has received multiple extensions to the deadline for submitting its formalisation plan. Most recently, on Jan 17, the group was given a seven-month extension to submit its plan. Bursa Malaysia had previously warned that Scomi Energy could be delisted if it failed to meet the extended deadline.

“The board of directors [Scomi Energy]”After further deliberation, we have decided to abort the regularisation plan announced on January 12, 2024,” the embattled oil and gas services group said on Wednesday, without giving a reason for the decision.

The formalisation plan announced in January includes a share consolidation, which will see the cancellation of RM445.5 million in share capital and a consolidation of 20 existing shares into 1 share, to reduce the group’s issued share capital from RM445.5 million to RM35,000. Following this, the group has proposed a private placement of 35.125 million new shares, representing 60% of the increased issued shares, at 22 sen each to DMIA founder and executive director Datuk Seri Dr Subramaniam Pillai Sankaran Pillai.

The proposal also included accepting a RM140.03 million contract from DMIA for the upgrade works and maintenance of Keretapi Tanah Melayu Bhd station and facilities as part of the Klang Valley Electrification Double Tracking Phase 2 project. The project was to be executed through the group’s wholly-owned subsidiary, Richfield Construction (M) Sdn Bhd. In addition, the group proposed to diversify its business to include the construction sector.

Scomi Energy’s previous regularisation plan also suffered setbacks due to its consolidated shareholders’ equity falling below 50% of issued capital since the group entered PN17 status in January 2020, necessitating the submission of a regularisation plan.

A memorandum of understanding signed with Duta Marine Sdn Bhd in August 2023 was terminated in January this year after a definitive agreement was not signed within the exclusivity period. The agreement included two options: Duta Marine could sell the assets to Scomi Energy in exchange for shares or cash, or explore other mutually agreed transactions.

Previously, Scomi Energy’s reverse takeover plan, announced in October 2022, aimed at listing concessionaire PJD Link (M) Sdn Bhd on Bursa Malaysia through a reverse takeover of Scomi Energy, was terminated on 17 July 2023 without further elaboration. The termination came following the Selangor state government’s announcement to abandon the controversial Petaling Jaya Dispersal (PJD) Link project by PJD Link (M) ahead of the August 2023 state elections.

Scomi Energy posted a net loss of RM1.08 million for the nine months ended March 31, 2024, compared with a net profit of RM26.55 million in the same period last year.

The group’s accumulated losses stood at RM473.38 million as at end-March.

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