Sapura Energy to seek shareholders’ nod for RM2.28b financing

UOB Kay Hian Research kept a

KUALA LUMPUR: Sapura Energy Bhd is proposing to seek shareholder’s approval to obtain financing facilities of up to US$550mil or RM2.28bil for its proposed joint venture with the OMV Aktiengesellschaft (OMV AG) Group.

It said on Thursday it intends to seek financing from local and/or foreign financial institution(s) and/or OMV E&P or another entity within OMV AG group for US$550mil but not less than US$350mil (RM1.456bil).

It said the group may also be required to provide corporate guarantees, undertakings and/or securities for 50% of the financing facilities to be obtained by SEB Upstream Sdn Bhd (SUP).

SUP is a joint venture incorporated to hold the entire equity interest of Sapura Upstream Sdn Bhd (SUSB), formerly Sapura Exploration and Production Sdn Bhd, resulting in cash proceeds f up to US$975mil (RM4.05bil).

Sapura Energy said of the US$550mil, the SUP group would use US$350mil to partially repay the amount owing by the SUSB Group to the Sapura Energy Group amounting to US$890mil and the remaining, if any, for the working capital.