Malaysia's Bumi Armada to Raise $633.8M with Rights Shares



Reuters

KUALA LUMPUR, Aug 27 (Reuters) - Malaysian oil field services firm Bumi Armada Bhd will raise 1.997 billion ringgit ($633.87 million) by selling rights shares, according to an announcement to the stock exchange on Wednesday.

The company has priced the rights at 1.35 ringgit per rights share, which will entitle investors to a bonus share for every two shares held in Bumi Armada. CIMB, Credit Suisse and Maybank are jointly coordinating the deal.

Funds raised will partly go into the capital expenditure of at least one new floating production storage and offloading project, the building or purchase of at least two offshore support vessels, two subsea umbilical riser and flowlines vessels, and equipment for enhanced oil recovery activities, according to a term sheet seen by Reuters.

($1 = 3.1505 Malaysian ringgit)

(Reporting By Al-Zaquan Amer Hamzah and Yantoultra Ngui; Editing by Michael Perry)



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