Renaissance Services is preparing for a cash call to investors in an effort to boost the company's expansion drive in the Gulf and the Caspian Sea after the cancelled listing of its UAE subsidiary this year.
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The Omani oilfield services company's board approved a capital increase of 50 million Omani rials (Dh475.8m) through a "quasi-equity instrument", Renaissance said in a statement to the Muscat Securities Market. The company will seek to raise capital from existing shareholders and new investors through a private placement, said Samir Fancy, the chairman.
"This capital raising provides Renaissance with the financial flexibility to continue our expansion plans and grow our core business, which continues to deliver a strong performance," he said. "We have made significant progress in addressing the challenges of 2011 and are pleased by the support shown in us by our investors."
BankMuscat acted as financial adviser and arranger of the capital raising.
Renaissance's plans to sell its stake in Topaz Energy and Marine were postponed by the Arab Spring, which forced a cancellation of the company's US$500m (Dh1.83 billion) listing on the London Stock Exchange in March.
Renaissance's shares were flat at 0.546 rials in trading on the Muscat bourse yesterday after the announcement. The shares have fallen 50.7 per cent this year, with the company experiencing three consecutive quarters of lower profit and a fraud scandal.
Renaissance said in September it had written off $2.9m of funds that had been "misappropriated" over a six-and-a-half-year period at Topaz Group, its UAE subsidiary.
Topaz Energy and Marine raised $380m from banks last month as part of a refinancing deal, which also included investments in new vessels.
ghunter@thenational.ae
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
