Petrofac in £180m money name to fund SFO bribery settlement | Enterprise Information

Petrofac, the London-listed oil group, will this week unveil plans to faucet shareholders in a £180m fundraising that might be utilized in half to pay a Severe Fraud Workplace (SFO) superb for bribery offences.

Sky Information has learnt that Petrofac is making ready to announce as early as Tuesday morning that it intends to undertake an fairness putting of about $250m (£181.5m).

One supply mentioned the shares could be bought at a value of about 120p – a roughly 25% low cost to Monday’s closing share value of 158p.

Petrofac’s board and its advisers are understood to be finalising the plans on Monday night.

If efficiently accomplished, the putting proceeds might be used to assist the corporate draw a line beneath probably the most ignominious chapter in its historical past.

Earlier this month, it introduced that it had been hit with a £77m superb following a long-running case introduced by the SFO.

In keeping with a Petrofac assertion in regards to the penalty, it associated to seven offences “of failing to stop former Petrofac Group staff from providing or making funds to brokers in relation to initiatives awarded between 2012 and 2015, opposite to Part 7 of the UK Bribery Act 2010”.

Rene Medori, the corporate’s chairman, mentioned: “We have now taken accountability, reformed and realized from these previous errors, as acknowledged by the SFO and the Court docket.

“The previous behaviour uncovered by the SFO wouldn’t be potential at this time, and we glance to the longer term a greater and extra centered firm, nicely positioned to capitalise on the alternatives we see earlier than us.”

An individual near Petrofac mentioned the equity-raising would kind a part of a complete refinancing bundle that will be designed to reset the corporate’s stability sheet and place it on a stronger monetary footing.

This week’s announcement is predicted to incorporate particulars of amended and enhanced borrowing services.

The dimensions of the share sale, which is claimed to have gained help from institutional buyers, is designed to supply extra funding for progress alternatives.

Petrofac designs and maintains oil, fuel and renewable power infrastructure, and has a robust presence within the Center East and North Africa, in addition to the UK North Sea.

In complete, the corporate employs greater than 9000 folks.

Goldman Sachs and JP Morgan, Petrofac’s company brokers, are mentioned to be engaged on the money name.

A Petrofac spokesman declined to remark.

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