(Alliance News) - Petrofac Ltd will go cap in hands to shareholders, as the provider of services to the oil and gas industry eyes raising funds to go towards a paying a UK Serious Fraud Office fine for bribery offences, Sky News reported on Monday.
Petrofac is planning a placing to raise USD250 million, Sky News reported. Citing one source, the news broadcaster reported shares will be sold at 120 pence each, about a 25% discount to Petrofac's closing price of 158p on Monday. The stock closed up 1.4% in London on Monday.
Sky News said Petrofac's board and its advisers were finalising plans for the cash raise on Monday evening.
https://news.sky.com/story/petrofac-in-180m-cash-call-to-fund-sfo-bribery-settlement-12444559
Petrofac in October said it was fined GBP77 million by the UK Serious Fraud Office and Southwark Crown Court for seven bribery offences. It had pleaded guilty in September.
The penalty consists of a confiscation order of GBP22.8 million, due at the start of January, plus a fine of GBP47.2 million and the SFO's costs of GBP7 million, both due in mid-February.
The bribes were paid or offered by Petrofac employees to buying agents as part of project bids from 2012 to 2015. "Over a period of six years, senior executives within the Petrofac group engaged in elaborate schemes to corrupt the awarding of contracts, using agents to systematically bribe officials to win lucrative contracts by unfair and dishonest means," the SFO said.
Petrofac noted that all the employees involved now have left the company.
The SFO noted this was the third set of convictions secured by the SFO in its four-year investigation of Petrofac. It said it continues to investigate the case.
By Eric Cunha; ericcunha@alliancenews.com
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Petrofac (PFC)