Sapura Energy’s top shareholders give support for RM4 billion rights issue

KUALA LUMPUR: Sapura Energy Bhd (SEB) has received letters of irrevocable undertaking from its two biggest shareholders – Permodalan Nasional Bhd ( PNB) and Sapura Technology Sdn Bhd ( STSB) – for its proposed issuance of rights shares with warrants and Islamic redeemable convertible preference shares ( RCPS-i).

In a statement, the oil and gas solutions provider said the PNB group might emerge as SEB’s largest shareholder on completion of its proposed RM4 billion rights issue, with a shareholding of 40 per cent of the enlarged share capital.

Not only has it given its undertaking to subscribe to its full rights entitlement, PNB has also given its commitment to subscribe to additional rights shares, warrants and RCPS-i not taken up or not validly taken up by other entitled shareholders and/or their renouncees at an allocation to be determined later and subject to the availability of these excess shares.

Therefore, PNB and its associated funds intend to seek an exemption from the obligation to undertake a mandatory general offer.

STSB, meanwhile, has given a letter of irrevocable undertaking to subscribe to a minimum of RM300 million worth of rights shares with warrants.

PNB currently owns a 12.16 per cent direct stake in SEB while STSB holds 15.9 per cent.

Last month, SEB proposed a rights issue of up to 9.97 billion new ordinary shares at an issue price of 30 sen each together with free detachable warrants and a rights issue of up to 2.40 billion new RCPS-i at 41 sen each.

The amount to be raised of up to RM4 billion will mainly go towards partial repayment of the SEB group’s borrowings.

SEB President and group chief executive officer Tan Sri Shahril Shamsuddin said: “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.

“Sapura Energy remains committed to delivering greater value and creating a sustainable future for our shareholders.”

SEB said the group had also received commitments from Maybank Investment Bank and Credit Suisse to underwrite any remaining open portion of rights shares not undertaken by shareholders. — Bernama