KUALA LUMPUR: Sapura Energy Bhd has raised about RM4 billion from a rights issue which resulted in Permodalan Nasional Bhd becoming its largest shareholder.
The group received 8.14 billion of valid acceptances and excess applications for its rights shares with warrants which closed on January 16. This represented a subscription rate of 81.5 per cent.
For its Islamic redeemable convertible preference shares (RCPS-i), the group saw just above 100 per cent of valid acceptances and excess applications.
The remaining portion of the rights shares of 1.85 billion units will be fully taken up by appointed joint underwriters comprising Maybank Investment Bank Bhd, CIMB Investment Bank Bhd and RHB Investment Bank Bhd.
Following the rights issue, Permodalan Nasional Bhd and its associated funds emerged as the single largest shareholder with 40 per cent shareholding in Sapura Energy.
Sapura Technology Sdn Bhd will continue to be a significant shareholder, being the second largest after PNB, with a direct and indirect stake of 16.3 per cent.
Minority shareholders comprising both local and foreign participation will hold a total of 42.2 per cent.
Sapura Energy said the participation from PNB and other shareholders provided a strong equity base for it to chart and execute growth strategy to deliver long-term prospects.
Sapura Energy embarked on two corporate exercises to ensure it has sufficient capital to grow and operate on a stronger balance sheet.
In tandem with the rights issue, the group will form a 50:50 strategic partnership with OMV, which will result in Sapura Energy receiving cash proceeds of up to US$975 million.
An extraordinary general meeting to seek shareholders’ approval for the proposed strategic partnership is set for January 28, 2019.
Proceeds from both the rights issue and the proposed OMV partnership will be used to repay the group’s borrowings and for working capital.
Upon the completion of both exercises, the group’s gearing ratio is expected to drop significantly from 1.74 times to 0.62 time.
“Subsequently, the group is expected to benefit from savings in finance cost of about RM314 million per annum.”
Sapura Energy said its growth strategy continued to see fruition in the increasing number of contract wins.
The group’s contract wins to-date stood at RM9.3 billion for its engineering and construction and drilling businesses. Its growing order book now stands at RM19.3 billion.