KUALA LUMPUR: Sapura Energy Bhd
(SEB) will convene an extraordinary general meeting (EGM) on July 30, 2025, for shareholders to vote on its proposed regularisation plan aimed at restoring the company’s financial health and exiting Practice Note 17 (PN17) status.
In a filing with Bursa Malaysia today, SEB outlined four key components of the plan, which include capital reconstruction, debt restructuring, fundraising, and a proposed exemption for Malaysia Development Holding Sdn Bhd (MDH) and its partners from making a mandatory general offer.
SEB said the capital reconstruction exercise involves a 99.99 per cent reduction and a 20-to-1 share consolidation, but neither exercise will affect the percentage shareholding of existing shareholders.
The company also plans to reduce its borrowings from RM10.8 billion to RM5.6 billion under the debt restructuring proposal, which is expected to cut annual interest costs by 60 per cent or more than RM500 million.
Meanwhile, MDH will subscribe up to RM1.1 billion in redeemable convertible loan stocks (RCLS) to help settle outstanding vendor payments in the local oil and gas ecosystem.
The final component of the plan seeks to exempt MDH and its persons acting in concert from making a mandatory offer should they fully convert their RCLS.
SEB said a dedicated shareholders’ help desk will be set up from July 15 to assist with queries regarding the proposed regularisation plan.
With shareholders’ approval, the company aims to strengthen its equity position, improve liquidity and contract execution, restore market credibility, and eventually apply to exit its PN17 status upon recording two consecutive quarters of profit post-restructuring.
Group chief executive officer Muhammad Zamri Jusoh described the proposals as a decisive step in shaping the company’s future and determining whether it can transform into a resilient, profitable enterprise.
"By addressing legacy liabilities, enhancing our equity base and securing strategic support, we are rebuilding the foundation for future profitability and shareholder returns.
"We recommend that all shareholders vote in favour of these proposals and support SEB’s recovery and value creation journey,” he added. - Bernama
