SINGAPORE (June 8): Rawabi Holding Company, a Saudi energy services provider, plans to invest US$200 million (S$278.6 million) in Swiber Holdings, which is under judicial management.

On Monday, Swiber Holdings and its wholly-owned subsidiary Equatoriale Energy has entered into a binding term sheet with Rawabi.

Under the agreement, a new wholly-owned subsidiary, New Swiber, will be incorporated by Swiber Holdings at an issue price of US$10 million, as part of the initial investment. 

The exact number and price of the news shares will be determined.

Rawabi Holding Company will be buying new ordinary shares in New Swiber for the same amount. The initial subscription shares under New Swiber will comprise some 80% of New Swiber’s enlarged total issued shares. 

Rawabi will also invest US$190 million for new preference shares in the capital of Equitoriale Energy and/or New Swiber. This will be undertaken in tranches to be agreed in the subsequent investment, based on whether relevant milestones are being met.

As part of the deal, Swiber will be transferring certain assets it now owns to the New Swiber entity. They include four vessels, namely Resiliant and Swiber Quetzal, Swiber Ada and Swiber Oslo; a JTC leasehold property located at 12 International Business Park, [email protected].

Rawabi plans to tap Swiber’s engineering capabilities and technical expertise to jointly bid to develop a US$1 billion LNG power plant in Vietnam.

Shares in Swiber last traded at 10.9 cents before its trading halt in Aug 1, 2016. It has been in judicial management since Oct 6 that year.