KUALA LUMPUR (Aug 26): Globaltec Formation Bhd (KL:GLOTEC) said its Australian-listed unit NuEnergy Gas Ltd is making a cash call to raise gross proceeds up to A$8.17 million (RM24.05 million) to fund its early gas sales initiative in Indonesia.
The funds will be raised via a renounceable pro-rata entitlement offer of up to 408.54 million new shares in NuEnergy, on the basis of eight new shares for every 29 shares held by existing shareholders, at an issue price of A$0.02 per share.
The offer is partially underwritten by NuEnergy, in which Globaltec has a 64.66% stake.
Under the offer, Globatec’s units Globaltec Energy Resources Sdn Bhd and New Century Energy Resources Ltd will subscribe to their entitlement of 264 million new NuEnergy shares, totalling A$5.28 million, according to Globaltec’s filing with the local bourse on Monday.
The proposed subscription will enable NuEnergy to commence its early gas sales. This is expected to contribute positively to the group’s consolidated earnings and earnings per share in the future, Globaltec added.
The closing date for acceptance of entitlements is intended to be on Sept 12, 2024, at 5.00pm Sydney, Australia time.
“The entitlement field provides an opportunity for existing eligible shareholders to continue participating in the growth of the company, commencing with the company’s early gas sales initiative,” said NuEnergy in a statement.
NuEnergy is an independent clean energy company which is focused on the development of Indonesian unconventional gas assets. NuEnergy holds four onshore coal bed methane production sharing contracts (PSCs) across South Sumatra, Indonesia.
In 2021, the Indonesian Ministry of Energy and Mineral Resources had approved NuEnergy’s first plan of development for the Tanjung Enim PSC, under a gross split scheme in South Sumatra.
In June 2024, NuEnergy signed a heads of agreement with PT Perusahaan Gas Negara Tbk (PGN) for the sale and purchase of coal bed methane. PGN is a leading natural gas distribution and transportation player in Indonesia and a subsidiary of Indonesia’s state-owned oil and natural gas company PT Pertamina (Persero).
Under the heads of agreement, NuEnergy targets to commence the sale and delivery of coal bed methane to PGN, estimated no later than one year after the gas sale & purchase agreement (GSPA) is signed, or a date mutually agreed by both parties.
Trading in Globaltec shares was halted for one hour between 10.43am and 11.43am on Monday.
At noon break, Globaltec was unchanged at 49 sen, valuing the group at RM132 million.
Globaltec is an integrated manufacturing services solutions provider, offering services such as precision metal stamping, precision machining and assembly of radio frequency microwave, photonics and medical components; design and fabrication of precision tooling and automation equipment; injection moulding and blow moulding; as well as design, manufacturing and assembly of automotive components.