KUALA LUMPUR: Sapura Energy Bhd (SEB) has obtained firm support from two major shareholders, Permodalan Nasional Bhd (PNB) and Sapura Technology Sdn Bhd (STSB), via letters of irrevocable undertaking for their proposed rights issue with warrants and rights issue of Islamic redeemable convertible preference shares (RCPS-i).
The Group has received commitments from Maybank Investment Bank and Credit Suisse to underwrite any remaining open portion of rights shares not undertaken by shareholders.
The rights issue entails raising up to RM4 billion, of which up to RM3 billion will be via the rights issue of ordinary shares with free warrants and up to RM1 billion through the rights issue of RCPS-i.
PNB and its associated funds (PNB Group) will subscribe to its full entitlement rights shares with warrants, and excess shares with warrants not taken up, resulting in the PNB Group having shareholdings of 40 per cent of the post-rights enlarged share capital.
In addition, PNB Group will subscribe in full to the RCPS-i of RM1 billion.
Upon completion of the rights issue, the PNB Group may emerge as the largest single shareholder.
STSB, a direct shareholder, will subscribe to the rights issue for a minimum amount of RM300 million as announced earlier.
“We are appreciative of PNB’s readiness to embark on our next phase of growth and its confidence in our prospects for the future against the backdrop of improving industry conditions.
"SEB remains committed to delivering greater value and creating a sustainable future for our shareholders,” SEB president and group chief executive officer Tan Sri Dato’ Seri Shahril Shamsuddin said in a statement today.
The Group had implemented a strategic plan to strengthen its core businesses, boost its financial position and create better value for its shareholders.
In tandem with the rights issue, SEB had recently entered into an exclusive negotiation with a major Austrian oil and gas company, OMV AG.
The strategic partnership will result in OMV AG acquiring 50 per cent of Sapura Energy’s upstream business.
“The newly injected capital from the rights issue will enable the Group’s businesses to pursue its plans to bid for and execute higher value projects in key regions, and at the same time, our joint venture with OMV AG will enable us to further expand our global footprint, build our acreage position, create further opportunities for our Services segment and develop local talent,” Shahril said.
Both the corporate exercises form key components of SEB’s continuing growth strategy.
Once completed, SEB will have a sustainable capital base to support its operations and global growth momentum.