Temasek discloses holding of FTS International warrants

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

Singapore state-owned investment company Temasek Holdings disclosed Tuesday it has shared voting power on 992,496 shares of FTS International issuable upon exercise of warrants, which would be a 7.06 percent stake in the company upon exercise.

The warrants are held by Maju Investments (Mauritius), which is a wholly owned subsidiary of Fullerton Fund Investments, which is a wholly owned subsidiary of Temasek.

In September 2020, FTS International filed for Chapter 11 bankruptcy in the U.S., and in November the court approved a deal with the company’s creditors to cancel its outstanding shares — including 2.08 million shares held via Temasek’s subsidiaries — in a debt-for-equity deal, according to a filing to the U.S. SEC.

The deal erased around US$440 million of debt, according to a Wall Street Journal report. The company was hurt by the Covid-19 pandemic and sharp oil-price declines, the report said.

Temasek’s subsidiaries received 496,289 shares and warrants to purchase an additional 2.06 million shares in the deal, the filing said. In January, the subsidiaries sold 12,429 of the shares in the market, and in February, sold the remaining 483,860 shares, the filing said. In August, 1.07 million warrants were sold in a private sale.

FTS International provides oil-field services, including well completion and hydraulic fracturing services.