Transaction News: Skrine Advised on Issuance of 1.032 billion shares in Reach Energy Berhad on the Main Market of Bursa for the debt capitalisation between Reach Energy Berhad and Super Racer

Skrine acted as lead transaction counsel for Reach Energy Berhad (“REB”), a company listed on the Main Market of Bursa Malaysia Securities Berhad (“Bursa”) in respect of the debt capitalization exercise between REB and Super Racer Limited (“SRL”), by way of issuance of new ordinary shares representing 48.5% of the enlarged share capital of REB for a total subscription price of USD49,562,125.54 which is satisfied by partially offsetting the existing debt owed by REB to SRL.
 
Following the exercise, SRL has emerged as a major shareholder of REB with 1.03 billion shares, or 48.5% of the enlarged issued share capital of REB.
 
The completion of the debt settlement also marked SRL’s entry into a shareholder loan facility agreement to make available a facility of up to US$5 million, or RM22.87 million, to REB.
 
The Skrine deal team was led by M&A Partner Fariz Abdul Aziz, who was supported by Senior Associate Tan Wei Xian, together with Associate Amanda Hollow and Paralegals Siti Sarah binti Iskandar, and Lee Li Zhu.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.