KUALA LUMPUR (April 2): Globaltec Formation Bhd has secured an investment of 51% 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 or a total of A$38.52 million.

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

"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.

The proposed placement is subject to the approval of both Globaltec and NuEnergy shareholders.

Shares in Globaltec, which were suspended from trading between 9am and 10am today, were down 0.5 sen or 1.1% at 46.5 sen as at 11.15am, giving the group a market capitalisation of RM125 million.