1 week ago
SEPC Shares Jump 5% After Board Approves UAE Restructuring
SEPC’s board approved a plan to reorganize part of its business in the UAE.
The plan involves issuing 40,000 shares in SEPC FZE.
A small portion of these shares will be used to pay for a share swap instead of using cash.
Most of the shares will be issued to SEPC Ltd by converting reserves into share capital.
SEPC Ltd will still own 95.75% of SEPC FZE.
The board also approved, in principle, the purchase of Wintality Petroleum FZE.
That company imports, exports and trades refined petroleum products around the world.
SEPC’s managing director said the plan will help the company expand internationally without cash spending by the parent company.
SEPC shares rose 5% after its board approved a restructuring involving SEPC FZE.
Of 40,000 enlarged shares, 1,700, or 4.25%, will be used as non-cash share-swap consideration.
The remaining 38,300 shares will be issued to SEPC Ltd through capitalisation of reserves, leaving it with a 95.75% stake in SEPC FZE.
SEPC FZE received in-principle approval to acquire 100% of UAE-based Wintality Petroleum FZE.
Wintality Petroleum trades refined petroleum products globally and would become a step-down subsidiary of SEPC Ltd after completion.
- Who
- SEPC Ltd, its subsidiary SEPC FZE, and Wintality Petroleum FZE.
- What
- SEPC’s board approved a restructuring and gave in-principle approval for SEPC FZE to acquire Wintality Petroleum FZE.
- Where
- The transactions involve SEPC FZE in Sharjah and Wintality Petroleum FZE in the United Arab Emirates.
- When
- The article does not specify the date; the approvals were announced after the board meeting referenced in the report.
- Why
- SEPC said the structure would expand its UAE operations and refined petroleum trading business without cash outflow from the parent company.
Key facts
- Share-price move
- SEPC shares jumped 5%.
- Enlarged share pool
- 40,000 shares in total.
- Share-swap consideration
- 1,700 shares, equal to 4.25% of the enlarged pool.
- Shares issued through reserves
- 38,300 fully paid-up shares.
- SEPC Ltd ownership
- 95.75% of SEPC FZE after the issuance.
- Proposed acquisition
- SEPC FZE plans to acquire 100% of Wintality Petroleum FZE.
- Business of Wintality Petroleum
- Import, export and global trading of refined petroleum products.
Quotes
Venkataramani Jaiganesh
Managing Director of SEPC Ltd
“It is a capital-efficient step towards broadening SEPC’s international footprint beyond project execution.”
businesstoday.in
“This structure allows us to build scale in the UAE using value already created within our own subsidiary.”
businesstoday.in
Sources
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