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Malaysia's Sapura Energy is both an oil company and an offshore services provider and wants to grow its global business.
In a statement released on Friday, Sapura Energy said it had proposed a rights issue as part of a broader strategic plan to strengthen the group's core businesses, enhance its financial position and create better value for its shareholders. “In addition to the rights issuance exercise, the Group is evaluating various options that may involve listing its E&P business and exploring a potential strategic partnership for the drilling business,” the company said. The company has a fleet of Tender Assist Drilling equipment.
The exercise entails raising up to RM 4.0 billion (US$973 million), of which up to RM 3.0 billion will be through the issuance of unsecured common share rights and up to RM1.0 billion through the issuance of Islamic redeemable convertible rights. sharing preferences.
Shahril Shamsuddin, Group President and Chief Executive Officer, Sapura Energy Berhad, said: “Sapura Energy is in a phase of strong growth today and we are determined to capitalize on the emerging opportunities. The rights issue will allow us to strengthen our balance sheet and continue our growth momentum, which includes bidding and executing higher value projects globally.”
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The company said the rights issue provided an opportunity for all shareholders to participate in the company's capital potential "as it enters its current phase of growth, which has seen significant successes."
Seeking shareholder support
The Group is seeking participation for the exercise of all substantial shareholders and has since obtained letters of support from Sapura Technology Sdn Bhd (“Sapura Technology”) and Permodalan Nasional Berhad (“PNB”).
Sapura Technology, the direct shareholder holding 16%, has expressed its intention to participate in the rights issue for a minimum amount of RM300 million. Meanwhile, PNB has indicated its support for the exercise, committing to underwrite its right and is looking at the prospect of taking over excess shares up to an agreed amount to be determined at a later date.
The proposed rights issue is subject to shareholder approval at an Extraordinary General Meeting to be convened at a later date.
Sapura Energy said that, over the years, each of the Group's three distinct businesses has grown considerably and established itself as a world-class player in their respective segments.
“Each of these business segments has different aspirations, capital requirements and unique risk-reward profiles, which led to the strategic plan,” the company said.
“Our business has grown to such a scale that now is an opportune time for Sapura Energy to execute on our strategic plan that will enable each of the companies to access the capital markets to pursue their growth aspirations and ride the wave of growth” said Shahril Shamsuddin
“Our aim is to further unlock the value of our business for our shareholders through a concerted effort to deleverage the Group, improve our capital base and ensure that our businesses are well capitalized as they chart their own growth path,” he explained. Tan Sri Shahril.
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