Permodalan Nasional Berhad (PNB) and its associated funds have emerged as the single largest shareholder with 40% shareholding in Sapura Energy.
Sapura Technology Sdn Bhd is now the second largest shareholder with a direct and indirect shareholding of 16.3%. Minority shareholders comprising both local and foreign participation hold a total of 42.2%.
The group received 8,138,379,841 of valid acceptances and excess applications for its rights shares with warrants, representing a subscription rate of 81.5 %.
For its Islamic redeemable convertible preference shares (RCPS-i), the group saw just above 100 % of valid acceptances and excess applications.
It said in a statement that the remaining portion of the rights shares of 1,848,545,304 would be fully taken up by appointed joint underwriters – Maybank Investment, CIMB Investment Bank and RHB Investment Bank.
Sapura Energy said the participation of PNB and other shareholders would provide a strong equity base for the group to chart and execute its growth strategy to deliver long-term prospects.
Sapura Energy embarked on two corporate exercises to ensure the group has sufficient capital to grow and operate on a stronger balance sheet.
In tandem with the rights issue, the group will be forming a 50:50 strategic partnership with Austrian integrated oil and gas company 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 Jan 28.
Proceeds from both the rights issue and the proposed strategic partnership with OMV will be utilised to repay the group’s borrowings and for working capital.
Upon the completion of both exercises, the group’s borrowings will be reduced, and its gearing ratio is expected to drop significantly from 1.74x to 0.62x.
Subsequently, the group is expected to benefit from savings in finance cost of approximately RM314 million per annum. The stronger balance sheet will provide greater financial flexibility for the group to deliver its growth plans.
“Sapura Energy’s growth strategy continues to see fruition in the increasing number of contract wins. The successful rights issue comes amidst the group’s contract wins to-date in FY19 (financial year 2019) of RM9.3 billion for its engineering & construction and drilling businesses. The group’s growing order book now stands at RM19.3 billion,” the company said.
It said the rights shares with warrants and RCPS-i would be listed and quoted on the main market of Bursa on Jan 29.