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% of the enlarged share capital, Bernama stated.
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% direct stake in SEB while Sapura Technology holds 15.9%.
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 CEO 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.
The group had implemented a strategic plan to strengthen its core businesses, boost its financial position and create better value for its shareholders.
The statement stated that in tandem with the rights issue, Sapura Energy 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% 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,” said Shahril.
Both the corporate exercises form key components of the group’s continuing growth strategy.
Once completed, the group will have a sustainable capital base to support its operations and global growth momentum.