This is the second time Mokhzani is offloading its stake in an oil and gas firm. In 2015, Mokhzani’s private vehicle, Khasera Baru Sdn Bhd sold off a block of 190.3 million shares in SapuraKencana Petroleum Bhd for close to RM820mil in total.
Industry players said Mokhzani’s exit did not come as a surprise. They added that Mokhzani believed the oil and gas industry was a global issue and prefers to redeploy his resources in other investments.
Mokhzani through Khasera Baru has a 10.10% stake in Sapura Energy.
According to a term sheet, Mokhzani is looking to sell up to RM905.1mil of Sapura Energy shares. The bookbuilding range for the offer represents 605 million Sapura Energy shares was between RM1.42 and RM1.49 a share.
The price range represents an 8% to 12.3% discount to Sapura Energy’s closing price of RM1.62 on Wednesday ahead of the bookbuilding launch.
Khasera Baru will not own any Sapura Energy shares after the sale.
Sapura Energy declined 8.02%, or 13 sen to RM1.49 with more than 50.5 million shares changed hands at 12.19pm. The stock rose 1.4% in the past month. It is currently trading at 185 times trailing 12-month earnings per share and 82 times its estimate next year.
In a recent report, RHB Research said Sapura Energy may likely face continued challenges in FY18, as it grapples with lower earnings from its drilling segment.
“The outlook for its engineering and construction (E&C) and energy segments, however, remains positive,” it said, adding that the orderbook for E&C remains stable while replenishment continues to be robust.
“Its energy segment is looking forward to its first gas production in 3QFY18, which would provide a recurring base of income.
“Maintain ‘buy’, with a lower SOP-based target price of RM2 (from RM2.20, 39% upside) as we adjust our assumptions on its drilling unit’s contributions and its balance sheet,” RHB said.
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