KUALA LUMPUR (April 14): Special purpose acquisition company (SPAC) Sona Petroleum Bhd has raised the proposed capital repayment up to RM90 million or eight sen per share — a move to garner shareholders’ support to its proposed qualifying acquisition (QA).

Meanwhile, in a letter to its shareholders today, Sona said the adjourned extraordinary general meeting (EGM) in relation to the proposed QA will be held on April 26.

To recap, Sona adjourned its EGM on March 30, citing the reason shareholders were unclear about the company’s proposed capital repayment of RM80 million was unveiled less than a week before the meeting.

According to the announcement to Bursa Malaysia today, Sona’s proposed capital repayment is not dependent on the amount paid for share repurchase.

The entitled shareholders for the proposed revised capital repayment will also include holders of the free detachable warrants in the company who exercise their warrants prior to the entitlement date.

Sona said the distribution amount will be funded by the remaining 20% of the amount standing in the company’s cash trust account net of all taxes payable after deducting payments made pursuant to the share repurchase, and the remaining distribution amount will be funded by the proceeds from the exercise of warrants held by Platinum Autumn Sdn Bhd.

As at April 11, Platinum Autumn owns 20% stake or 282.1 million shares in Sona and 282.1 million warrants. This is the investment vehicle of Sona’s management. The exercise price for the warrants is at 35 sen.

To exercise the warrants, Sona’s management needs to seek permission from the Securities Commission to partially lift the moratorium up to 193.5 million warrants.

“Subject to all the required approvals being obtained and the completion of the proposed acquisition, the proposed revised capital repayment is expected to be completed by the third quarter of 2016,” said Sona.

Sona closed unchanged at 45 sen today, with 482,200 shares traded, for a market capitalisation of RM634.82 million.