PROPEL GLOBAL BERHAD (“Propel Global” or the “Group”), a provider of oil and gas (“O&G”) services, today announced the successful conclusion of its Extraordinary General Meeting (“EGM”), with shareholders approving all resolutions tabled, providing the Group with a clear mandate to proceed with a series of strategic and financial initiatives.
Among the key resolutions approved was the proposed disposal by Propel Oilfield Services Sdn Bhd, a 49.0%-owned subsidiary of the Company, of its remaining 70.0% equity interest in Propel Maxflo Sdn Bhd to Reservoir Link Sdn Bhd, a wholly-owned subsidiary of Reservoir Link Energy Berhad, for a total consideration of RM17.24 million. The consideration will be satisfied through a combination of RM13.79 million in cash and the issuance of approximately 18.69 million new ordinary shares in Reservoir Link Energy Berhad at an issue price of RM0.1845 per share. The cash proceeds will be utilised in accordance with the purposes outlined in the Company’s circular to shareholders.
Shareholders also approved the proposed private placement of up to 146.7 million new ordinary shares, representing approximately 19.3% of the Company’s total issued share capital. The placement, which includes approved allocations to eligible directors, major shareholders and independent third-party investors, provides Propel Global with enhanced funding flexibility to support its operational and strategic priorities. The issue price will be determined at a later date, at a discount of not more than 10% to the five-day volume-weighted average market price prior to the price-fixing date.
In addition, shareholders approved the proposed reduction of the Company’s issued share capital by RM65.5 million pursuant to Section 117 of the Companies Act 2016. The capital reduction will be applied entirely to offset accumulated losses, strengthening the Group’s balance sheet without any cash outflow.
Ms. Angeline Lee, Executive Director / Group Chief Executive Officer of Propel Global said, “Today’s EGM represent a significant step forward for Propel Global. With a clear mandate from our shareholders, we are now well-positioned to execute our strategic priorities, strengthen our financial foundation, and sharpen our operational focus. These initiatives provide us with the flexibility and resilience needed to pursue sustainable growth while remaining disciplined in capital management.”
With all resolutions approved, the Board is authorised to take the necessary steps to implement the proposals, subject to the fulfilment of regulatory requirements. Propel Global will continue to focus on streamlining its portfolio, reinforcing its balance sheet, and positioning the Group for its next phase of execution amid an evolving industry landscape.
