SERI KEMBANGAN — Nov. 29, 2018: Shareholders of Sapura Energy Berhad today approved several resolutions including a capital injection exercise via a rights issue to raise RM4.0 billion.
The extraordinary general meeting proceeded smoothly, with solid backing from institutional funds such as Permodalan Nasional Berhad and holding company Sapura Technology Berhad.
PNB is committing to subscribe excess rights shares subject to an aggregate shareholding of 40 per cent while Sapura Technology will subscribe to a minimum of RM300 million rights shares.
“The approval for the rights issue will help to strengthen the balance sheet by capitalising on emerging opportunities,” said the group’s President and Group Chief Executive Officer Tan Sri Shahril Shamsuddin, adding that the group also sought shareholders’ agreement for the OMV AG.
Shahril also said Sapura Energy is open to a partnership with global companies for its drilling segment and is currently in talks with several. The group is looking for a partnership arrangement similar to its recent agreement with Austria’s OMV Aktiengesellschaft (OMV AG).
The partnership with OMV AG is to open the way to a joint-venture company through the sale of a 50 per cent stake in SEB’s gas exploration and production arm, Sapura Upstream Sdn. Bhd.
“We are in talks with several foreign companies who have approached us and we are still looking for the best partnership with the best price,” said Shahril.
Currently, the group’s order book stands at RM18.2 billion, with 80 per cent of the orders in engineering and construction.
The group has 16 drilling assets which are quite young and can last between 16 and 20 years on average.
Shahril said that during the industry downturn over the past three years, the group adopted an offensive strategy to open up new markets and develop new capabilities, expertise and processes.
“Our efforts bore fruit and we are now a company with high levels of skills in finance, engineering, contract management, procurement, commissioning, exploration and production and, robotics,” he said. — Bernama