Sapura Energy shares up on disposal of O&G arm

KUALA LUMPUR: Sapura Energy Bhd’s shares were up this morning after it announced the disposal of a 50% stake in its oil and gas exploration arm.

The counter jumped 14.08%, or five sen to 40.5 sen. Sapura Energy is the most active counters with over 136 million shares traded.

Sapura Energy has entered into a Head of Agreement (HoA) to dispose a 50% stake in its oil and gas exploration arm based on an enterprise value of US$1.6bil (RM6.5bil) to Austria’s OMV Aktiengesellschaft (OMV).

The proposed transaction is subject to continued ongoing negotiations between the two parties in an exclusive basis.

The proposed HoA comes ahead of Sapura Energy undertaking a massive rights issue of RM4bil to reduce its long and short term debts of more than RM15bil.

Sapura Energy’s president and chief executive Tan Sri Shahril Shamsuddin said that the company had been evaluating various options as part of the group’s broader strategic plan to strengthen its core businesses, boost its financial position and create better value for its shareholders.

“We have explored all options including the potential listing of Sapura Upstream. The invitation to enter into this strategic partnership with a leading oil and gas player serves our goals and aspirations better while providing certainty in timing and valuation,” he said in a statement.

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