KUALA LUMPUR: Globaltec Formation Bhd has secured an investment of A$38.52 million (RM111.2 million) for a 51% stake in its Australian-listed subsidiary NuEnergy Gas Ltd from Saujana E&P Sdn Bhd, via a new share placement.

NuEnergy had entered into an investment agreement with Saujana E&P for 1.54 billion new shares or 51% of its enlarged share capital, at a placement price of 2.5 Australian cents a piece.

The funds will be used to fulfil work and firm commitments to NuEnergy’s South Sumatra Production Sharing Contracts (PSCs) as well as the Tanjung Enim PSC in Indonesia, Globaltec said in a stock exchange filing yesterday.

“Upon completion of the proposed NuEnergy placement, the group’s direct and effective interest in NuEnergy will be diluted from 64.7% and 51.7% to 31.7% and 25.4% respectively,” it said.

NuEnergy is the group’s principal subsidiary, but will be treated as an associated company following the proposed placement.

“Although the proposed placement will result in a dilution of more than 25% shareholding in the principal subsidiary, the board of directors of Globaltec is of the opinion that it will enable fresh new funds into the energy segment of the group and will facilitate and expedite the development and commercialisation of unconventional gas production,” the group said.

Saujana E&P is a Malaysian investment holding company owned by Lau See Hua and Margaret Voon Lee Ching on a 50:50 basis.