Sapura Energy raises RM4bil via rights issue

Kenanga Research said while the outlook is expected to improve from financial year 2020 (FY20) onwards, it has maintained its

PETALING JAYA: Sapura Energy Bhd has achieved its target to raise at least RM4bil from its rights issue exercise, even as some shareholders chose not to subscribe their portion of the shares.

The company, in a statement yesterday, said the rights share offerings that came with free detachable warrants were 81.5% subscribed. For its Islamic redeemable convertible preference shares, the group saw 100% valid acceptances.

“The remaining portion of the rights shares will be fully taken up by the appointed joint underwriters - Maybank Investment, CIMB Investment Bank and RHB Investment Bank,” it said.

Following the exercise, Permodalan Nasional Bhd (PNB) and its associated funds have emerged as the single largest shareholder with a combined 40% shareholding in Sapura Energy.

Sapura Technology Sdn Bhd, controlled by CEO Tan Sri Shahril Shamsuddin, remained a significant shareholder, being the second largest after PNB, with a direct and indirect shareholding of 16.3%.

Minority shareholders, comprising both local and foreign participation, will hold a total of 42.2%.

The participation from PNB and other shareholders provides a strong equity base for the group to chart and execute its growth strategy to deliver long-term prospects,” it said.

Sapura Energy has embarked on two corporate exercises to reduce its RM16bil debt and put the company back on a stronger balance sheet.

In tandem with the rights issue, the group will be forming a 50:50 strategic partnership with OMV AG, which will result in Sapura Energy receiving cash proceeds of up to US$975mil.

An EGM to seek shareholders’ approval for the proposed strategic partnership is set for Jan 28, 2019.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3

Did you find this article insightful?


Next In Business News

Affin Bank weighs IPO of asset management unit
AWC-Techkem JV bags RM21mil sub-contract for treatment plant in Melaka
Proton car sales up 18% in November
Sources: China’s Ant considers Paytm stake sale amid tensions with India
Bursa presses pause button after sharp rebound
Hong Kong shares close lower on tech, healthcare retreat
Grab, Gojek close in on terms for merger
Future of finance is in wealth management, retail trading
China shares end flat as healthcare losses offset gains in property stocks
Biden will not immediately remove Phase 1 trade deal with China

Stories You'll Enjoy