SESB, now a Practice Note 17 (PN17) company, said in a circular to its shareholders that it would sell its 48% equity interest in Scomi KMC Sdn Bhd and its entire stake in Scomi Oilfield Ltd, together with its nine subsidiaries, to Cahya Mata Oiltools Sdn Bhd.

Cahya Mata Oiltools is a 75%-owned subsidiary of Cahya Mata Sarawak Bhd.

At the same time, Scomi Oiltools Sdn Bhd (SOSB) also proposes to dispose off its 4% interest in Scomi KMC, together with 25 million redeemable preference shares in the company, to Oiltools International Sdn Bhd, a wholly-owned subsidiary of Cahya Mata Oiltools.

Cahya Mata Oiltools is also acquiring SOSB’s 25% interest in Scomi Oiltools Gulf W.L.L, 25% stake in Continental Wire Cloth (M) Sdn Bhd, a property in Dataran Prima and SOSB’s inventories and equipment.

The disposals are for a total cash consideration of RM21 million.

SESB has also proposed to dispose off its entire equity interest in identified companies to Falcon Residences Sdn Bhd for a nominal cash consideration of RM1.

The proposed disposals are expected to result in a one-off gain of RM134 million and a one-time debt waiver of approximately RM122.1 million, benefiting from interest savings of approximately RM10 million per annum calculated based on an effective interest rate of 7.8% per annum.

In its note to shareholders, SESB said once the sale has been completed, the company will be able to formulate a comprehensive regularisation plan, for instance, a potential injection of new viable business by a white knight into the group.

It also said the exercise will enhance shareholders’ value rather than lead to a liquidation scenario and being delisted from Bursa Malaysia Securities.

For the six months to December 2021, SESB chalked up losses to the tune of RM14.49 million, compared with RM10.96 million in the same period last year. The company did not generate any revenue during this period.