KUALA LUMPUR (April 29): Propel Global Bhd (KL:PGB) has subscribed to 23.46 million shares or a 6.5% stake in a private placement by Reservoir Link Energy Bhd (KL:RL).
 
In a filing with Bursa Malaysia, Propel Global said it paid a total of RM7.39 million, or 31.5 sen per share, for the placement shares. The share subscription was funded via internally generated funds.

“The board, after having considered all aspects of the subscription, is of the opinion that the subscription is in the best interest of Propel Global,” the company said in the filing.

Propel Global said its independent non-executive director Elain Lockman is also an independent non-executive director of Reservoir Link. She abstained from the deliberation of the subscription.

Reservoir Link had announced the private placement on March 26. It comprised up to 37.81 million new shares in Reservoir Link, representing 10% of the total number of issued shares.

The issue price, announced at a later date, was 31.5 sen per share, representing a 9.97% discount to the five-day volume-weighted average price (VWAP) of Reservoir Link up to April 17.

Both companies operate in the energy segment. Propel Global is a provider of oil and gas services such as pipe recovery for drilling operation while Reservoir Link is principally engaged in the provision of renewable energy activities, wastewater treatment and developing and providing oil and gas production.